African sovereigns are regaining a measure of financial stability, with credit ratings improving and access to international capital markets reopening, according to the Afreximbank (African Export-Import Bank)’s August 2025 macroeconomic report.
The report highlighted Ghana’s upgrade from Fitch following progress in its debt restructuring programme. Côte d’Ivoire, Angola, and Senegal also maintained stable outlooks, which Afreximbank said reflected steadier fiscal conditions and more predictable policy environments.
The report noted that several countries, including Egypt and Benin, returned to the Eurobond market in 2025, raising external financing after years of restricted access. These issuances, Afreximbank observed, signaled investor interest returning to African debt, even as borrowing costs remain elevated.
Improved credit ratings are critical for African economies because they lower the risk premium attached to sovereign debt, helping governments borrow at more favorable rates and on longer maturities. For investors, stronger ratings provide clearer signals of fiscal discipline and policy stability, making African bonds more attractive in a competitive global market.
For businesses, stronger sovereign ratings can have a trickle-down effect. Lower government borrowing costs often feed into domestic financial markets, easing credit conditions for banks and firms. This can help reduce financing costs for investment, expansion, and trade, while boosting confidence among both local and foreign investors.
Despite the positive momentum, the report cautioned that risks persist. High financing needs and falling commodity prices continue to weigh on fiscal balances, raising concerns over debt sustainability. Afreximbank underscored the importance of continued fiscal reforms to consolidate recent gains.
The developments, the report concluded, mark an important sign of recovery, but sustaining improved ratings will require discipline in debt management and broader structural reforms.
