What does it take for countries to secure better credit ratings—and unlock more affordable development financing? A recent South-South exchange in Manila is offering practical answers.
South-South and triangular cooperation are playing an increasingly important role in building national capacities to address complex development priorities, including strengthening sovereign credit ratings to unlock sustainable development financing and support long-term growth.
This was the key takeaway from an Executive Study Tour and South-South exchange held in Manila, Philippines, from 21 to 23 April, convened under the UNDP Africa Credit Ratings Initiative. The tour brought together more than 20 policymakers from across Africa, alongside senior representatives and technical experts from sovereign credit rating institutions in the Philippines. It provided a platform for peer learning, focusing on Africa’s credit rating landscape and drawing practical insights from the Philippines’ successful path to achieving investment-grade status.
Sovereign credit ratings play a critical role in shaping countries’ access to financing and determining borrowing costs. As highlighted in the 2025 UNDP report Sovereign Credit Ratings: Perspectives for Africa’s Development, the implications for African economies are significant.
Currently, only four of the 32 African countries rated by major international agencies are classified as investment grade – Botswana, Morocco, Mauritius and St. Helena. On average, African countries face borrowing costs approximately 1.5 percentage points higher than peers with similar ratings in other regions. These elevated costs can consume up to a quarter of government revenues, limiting fiscal space for essential development investments.
To help address these systemic challenges, the United Nations Development Programme (UNDP) launched the Africa Credit Ratings Initiative in 2024, in partnership with AfriCatalyst and with support from the Government of Japan. Through initiatives such as this study tour, South-South exchanges continue to demonstrate their value in sharing practical solutions, strengthening institutional capacity, and advancing more equitable access to development finance.
Please read more on the Study Tour here:
https://www.linkedin.com/posts/from-2123-april-the-undp-africa-credit-share-7452217716838584320-uUie/
https://www.linkedin.com/posts/as-part-of-the-africa-credit-ratings-initiative-share-7452327211434426368-zXDB/
https://x.com/UNDPAfrica/status/2046450777116323905
