Africa: debt management pays off, Côte d’Ivoire leads the way
Several African nations saw their sovereign credit ratings improve in late 2025, which was supported by stronger economic performance, tighter control of public finances and progress in fixing debt issues, as reported by APA News on February 5th.
The detailed sovereign credit ratings are outlined in the 12th edition of the Africa Sovereign Credit Rating Outlook, jointly produced by the United Nations Economic Commission for Africa (ECA) and the African Peer Review Mechanism (APRM).
The report shows that while some countries recorded improvements or better upgrades, others faced downgrades as global financial pressure, weak revenues and domestic challenges continued to put pressure on public finances across the continent.
Côte d’Ivoire stood out as a strong performer. The West African country received a credit rating upgrade from Fitch Ratings, because of its political stability, steady economic growth of more than 6% and improved management of public debt. The report said the government’s active approach played a key role, such as its Eurobond buybacks.
By contrast, Botswana experienced rating downgrades from both Moody’s and Standard & Poor’s (S&P). The report said the cuts reflected a sharp fall in diamond revenues, which weakened government income and put pressure on public finances. Botswana has long been seen as one of Africa’s most stable economies, but the report highlights that even well-managed countries are exposed to economic shocks. Despite the downgrades, Botswana has kept its investment-grade rating, setting it apart from many other countries in the region.
Cape Verde also recorded a more positive assessment. S&P revised the island nation’s ratings upwards, signalling that a future upgrade is likely if current economic improvements continue. The report said this reflects progress in stabilising the economy and managing public finances.
Overall, the Africa Sovereign Credit Rating Outlook highlights the wide differences in economic conditions across African countries as they deal with higher global interest rates, weaker access to finance and ongoing debt pressures.
Beyond country ratings, the report makes several recommendations to improve the assessment of African sovereign credit. It calls for closer engagement between governments and international rating agencies to ensure ratings better reflect reforms already underway.
The authors also urged for greater transparency in how ratings are decided and question the use of rating limits that cap the scores of banks and companies based on their country’s sovereign rating. Addressing these issues could help present a more accurate picture of Africa’s economic progress and reduce borrowing costs over time.
APA News, Maghrebi.org
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