Africa's Borrowing Costs Are Too High - the G20's Missed Opportunity to Reform Rating Agencies

Africa's Borrowing Costs Are Too High - the G20's Missed Opportunity to Reform Rating Agencies

Analysis - One of the commitments the South African presidency of the G20 made in its policy priorities document at the beginning of 2025 was to push for fairer, more transparent sovereign credit ratings. And to address the high cost of capital caused by an illusive perception of high risk in developing economies.

Africa’s borrowing costs are too high: the G20’s missed opportunity to reform rating agencies

One of the commitments the South African presidency of the G20 made in its policy priorities document at the beginning of 2025 was to push for fairer, more transparent sovereign credit ratings. And to address the high cost of capital caused by an illusive perception of high risk in developing economies. South Africa proposed to establish a commission to look into the cost of capital. In particular, to investigate the issues that impair the abili…

Africa’s Borrowing Costs Are Too High: The G20’s Missed Opportunity to Reform Rating Agencies - Infrastructure news

One of the commitments the South African presidency of the G20 made in its policy priorities document at the beginning of 2025 was to push for fairer, more transparent sovereign credit ratings. And to address the high cost of capital caused by an illusive perception of high risk in developing economies. South Africa proposed to establish a commission to look into the cost of capital. In particular, to investigate the issues that impair the abili…

Africa's borrowing costs are too high: the G20's missed opportunity to reform rating agencies

South Africa needs to use its G20 presidency to press for reforms that could reduce Africa's borrowing costs and strengthen its financial sovereignty.