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S&P Global Ratings’ head of national ratings and analytics for Africa Samira Mensah. Photo: Courtesy — Platform Africa
JOHANNESBURG:
African governments will lean more on multilateral lenders and reform momentum in 2026 even as debt distress risks remain elevated across the continent, S&P Global Ratings’ head of national ratings and analytics for Africa Samira Mensah said on Monday.
“We have so far, according to the IMF, more than 20 countries facing a high risk of debt distress, or severe vulnerabilities,” she said.
Mensah added that resilience to external shocks is important because Eurobond borrowing typically comes in dollars. Bond issuance in sub-Saharan Africa has seen its strongest-ever start to a year with lower borrowing costs driving about $6 billion of sales from the likes of Benin, Kenya and Ivory Coast. More is in store including a maiden sale by the Democratic Republic of Congo.
The ratings agency said seven of its sovereign upgrades in Africa last year were driven mainly by improving growth prospects and reform momentum, but it also took negative actions where shocks and policy setbacks made credit metrics worse.
In a report released last week, S&P said outlook changes were “slightly tilted to the negative,” driven largely by Senegal, Mozambique and Madagascar. Positives included South Africa while Mensah highlighted Nigeria as a reform story.
South Africa is rated BB with a positive outlook, Nigeria is B- positive, Mozambique is at CCC+ with a negative outlook while Senegal is at CCC+ “credit watch developing” reflecting concerns that it may potentially default.
