Moody’s Upgrades Sub-Saharan Africa's Credit Outlook

Moody’s Ratings has announced a positive shift in the sovereign credit outlook for Sub-Saharan Africa for the first time in several years, attributing this change to enhanced economic policies, stronger commodity prices, and improved access to financing. The agency's assessment indicates that reforms by various governments have helped the region manage inflationary pressures and improve liquidity conditions.

However, Moody’s cautioned that the positive outlook is still susceptible to high debt-servicing costs, weak revenue mobilization, climate-related shocks, and security risks. Among the 25 rated sovereigns, Nigeria, South Africa, Namibia, Angola, Togo, Ghana, the Republic of Congo, and Zambia are identified as having positive outlooks.

Moody’s also projects that the economies of Sub-Saharan Africa will grow by 4.3 percent in both 2026 and 2027, despite existing fiscal challenges. The agency expects a reduction in overall borrowing requirements, forecasting that governments will need to raise 11.2 percent of GDP annually by 2027, down from 12.3 percent in 2025.