This new publication, Sovereign Credit Ratings: Perspectives for Africa's Development, responds to a structural financing challenge facing the continent: as concessional resources shrink, African countries increasingly turn to capital markets, where credit ratings determine not only access to funding but also the cost of borrowing. The report examines structural limitations in global methodologies, including foreign currency bias, insufficient consideration of informal economies, and asymmetric treatment of African risk, which continue to penalize many countries despite their governments implementing meaningful reforms.

Through case studies from South Africa and the Democratic Republic of Congo, the report showcases how countries can influence credit ratings through institutional credibility, policy clarity, and strategic use of assets. These cases, along with the technical recommendations presented, position the report as a practical tool for countries aiming to lower their borrowing costs. To address these systemic challenges, in 2024 UNDP launched the Africa Credit Ratings Initiative in partnership with AfriCatalyst and with support from the Government of Japan.