Policy Brief

Re-setting Relations between Credit Rating Agencies and the Global South

The role of credit rating agencies (CRAs) has been part of the G20 dialogue since 2013, with the Financial Stability Board (FSB) report on “Credit Rating Agencies: Reducing Reliance and Strengthening Oversight.” This was followed by the 2017 Report of the G20 Eminent Persons Group report on Global Financial Governance and the 2023 UNDP report, Lowering the Cost of Borrowing in Africa: The Role of Sovereign Credit Ratings, which estimates that subjectivities in global credit ratings cost African countries $75 billion annually. Despite these discussions, little progress has been made. The brief addresses key areas for reform, including re-evaluating asset categorisation, particularly for investments in technology and infrastructure, and refining CRA approaches to debt rescheduling. It also calls for a reassessment of African economies, especially those rich in critical minerals, which are often undervalued using traditional GDP metrics. Emerging frameworks like “Beyond GDP” offer pathways to better institutional and governance capacities. The G20 should endorse enhanced capacity for LICs/LMICs to engage with CRAs effectively and advocate for transparent methodologies. Supporting well-informed policies to regulate CRAs will help ensure fairer, more contextualised ratings, reducing the financial burden on developing countries.

12 Nov 2025

Task Force

Keywords

credit rating agenciesfinancial governance

Author/s

Amani Mhinda
Bureau Chief,
AfriCatalyst
(Kenya)
Maggie Mutesi
Managing Editor,
Mansa Media Africa
(Kenya)
Bayo Oyewole
Senior Fellow,
African Center for Economic Transformation
(United States of America)
Rob Floyd
Director for Digital Policy and Innovations,
African Center for Economic Transformation
(United States of America)
Ghislaine Tegha
Researcher,
Africatalyst
(Switzerland)