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Accra, Ghana 15 July 2024 (ECA) – Within the dynamic panorama of world finance, the credit standing has a big impression on the financial prospects of nations. For African international locations, the transparency of credit standing strategies isn’t just a technical difficulty, however a significant issue for higher communication and communication with score companies.
Regardless of the continent’s nice potential and the variety of its economies, international locations typically face perceived disproportionate dangers, affecting their capacity to entry inexpensive financing, appeal to funding and obtain sustainable growth.
To deal with these points, the United Nations Financial Fee for Africa (ECA) and the African Peer Assessment Mechanism (APRM) held a workshop in Accra. The three-day occasion, which ran from July 9 to 12, 2024, introduced collectively stakeholders from Ghana, Zambia, and main credit standing companies, together with S&P International and Moody’s, to debate credit standing approaches .
The workshop aimed to supply a complete understanding of the elements that affect these scores and to establish motion steps that African international locations can take to strengthen their credit score.
“By bringing collectively numerous stakeholders, we will foster a deeper understanding of credit standing procedures and work collectively to enhance the monetary stability and financial alternatives of African international locations,” mentioned Sonia Essobmadje, Head of Division of New Finance -conventional on the ECA.
The workshop included closed periods with credit standing companies, the place individuals engaged in simulations of sovereign credit standing workout routines and interactive Q&A periods.
Ms. Essobmadje defined “These actions had been designed to streamline the score course of and supply sensible insights on how international locations can higher current their financial information and coverage measures to score companies.”
McBride Nkhalamba, Appearing Director of Governance and Particular Reporting at APRM, highlighted the significance of this initiative, saying, “Consistency in coverage communication and clear reporting is vital to fostering investor confidence and decreasing score downgrades . “
Mr Nkhalamba identified that the APRM’s technical help missions had recognized gaps in institutional coordination and communication that wanted to be addressed to enhance credit score requirements. He emphasised the significance of the just lately established African Credit score Ranking Company (AfCRA), describing it as “essential to develop scores that actually mirror the financial and political panorama of African nations, “saying it is a “crucial step in the direction of reaching monetary stability. and fostering sustainable development throughout the continent.”
Ms. Essobmadje additionally emphasised that “So as to enhance credit score scores, African international locations should keep good fiscal insurance policies, enhance transparency and governance, and actively have interaction with credit standing companies to supply correct and complete financial information.” »
ECA and APRM have been on the forefront of supporting African international locations of their efforts to realize honest and correct credit score requirements. Via skilled conferences and collaborative efforts, each organizations have geared up international locations with the information and instruments wanted to navigate the advanced panorama of sovereign credit score scores.
Twice a 12 months, ECA and APRM produce a joint report assessing the credit standing panorama throughout the continent. This report assesses progress, identifies challenges, and offers strategic suggestions to enhance credibility.
Representatives from Ghana and Zambia participated within the workshop and shared their expertise in coping with score companies particularly within the context of their debt restructuring.
