Accra, 12 July 2024 - The African Peer Review Mechanism (APRM), in collaboration with the United Nations Economic Commission for Africa (UNECA), organized on 9-12 July in Accra, Ghana, a workshop on Sovereign Credit Rating Methodology Transparency and the launch the APRM report on the Credit Rating Technical Support Mission. The event brought together key stakeholders from Ghana and Zambia, as well as representatives of the three international credit rating agencies.
The primary objective of the workshop was to deepen understanding of the factors influencing credit ratings and to outline actionable steps for African nations to improve their creditworthiness. The event also served as a crucial platform for fostering dialogue and sharing insights into the methodologies underpinning international credit ratings, essential for shaping informed economic policies and investment decisions.
Delegates from Ghana and Zambia contributed valuable insights based on their experiences, particularly in managing rating agencies amid their respective debt restructuring processes. Participants further considered the findings and recommendations from the technical support mission to Ghana. These insights are expected to guide Ghana in strengthening governance frameworks for credit ratings and reinforcing economic resilience.
The APRM Report on the Technical Support Mission on Credit Ratings to Ghana was launched on the margins of the Sovereign Credit Ratings Methodology Transparency workshop by Hon. Ms. Abena Osei-Asare, Minister of State at the Ministry of Finance in Ghana. In her remarks, Madam Osei-Asare expressed the hope that the findings and recommendations contained in the report would serve as lessons for other African countries to improve their engagements with rating agencies. “If all African economies could embrace the content of the report, we would be in a better position to engage the credit agencies in a more coherent manner that would result in a win-win situation for all of us”, she said.
Dr. McBride Nkhalamba, Acting Director of Governance and Specialized Reporting at APRM, speaking on behalf of Her Excellency Ambassador Marie-Antoinette Rose Quatre, CEO of the APRM Continental Secretariat, highlighted the significance of this initiative, stating that “consistency in policy communication and transparent reporting are imperative in fostering investor confidence and mitigating potential rating downgrades.” Dr. Nkhalamba further pointed out that the APRM technical support mission had identified gaps in institutional coordination and communication that need to be addressed to improve credit ratings. He underscored the importance of establishing an African Credit Rating Agency, describing it as “essential for developing assessments that truly reflect the unique economic and political landscapes of African nations,” as well as “a critical step towards achieving financial stability and fostering sustainable growth across the continent.”
The report highlights sovereign credit risk analysis, findings and recommendations to improve Ghana’s engagement with credit rating agencies and is based on the outcomes of the technical support mission that took place on 11–15 March 2024.
Following the report launch, the APRM conducted a press briefing with prominent media houses in Ghana. The briefing focused on the findings of APRM technical support mission to Ghana and progress towards establishing the African Credit Rating Agency. The report revealed that while Ghana possesses commendable technical expertise within the Ministry of Finance, there are gaps in institutional coordination, particularly in the proactive engagement with credit rating agencies outside of routine review periods. The report also identified the absence of a structured standing committee on sovereign credit ratings and the need for enhanced collaboration between the Ministry of Finance and the Bank of Ghana.
The APRM remains committed to supporting Member States in achieving their developmental aspirations through improved credit ratings and access to financial markets. The outcomes of the workshop and the report launch reflect the APRM commitment to promote good economic governance across Africa.
