Experts at a major two-day conference in Dakar, Senegal, have issued a stark warning that Africa is losing approximately $75 billion every year due to biased credit ratings imposed by foreign agencies. Organized by AfriCatalyst, SAIIA, UNDP, and AUDA-NEPAD, the event gathered top policymakers, economists, and financial experts focusing on how Africa can amplify its voice in global financial governance, affecting G20, FfD4, and COP30 agendas.
The Africa Credit Ratings Initiative was a key highlight, proposing regional mechanisms to reduce Africa’s dependence on external ratings that exaggerate risk, raise borrowing costs, and restrict funding for critical social and infrastructure projects. Africa’s external debt hit $863 billion in 2023, consuming 16% of export revenues with bond yields at 9.8%, seriously limiting development funds.
Calls were made to tackle illicit financial flows costing $88 billion annually, establish African financial stability frameworks, and reform domestic capital markets. Experts emphasized enhancing regional cooperation and ensuring reforms translate into measurable, inclusive development outcomes.
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