Moody’s Turns Positive on Sub-Saharan Africa as Debt, Liquidity Improve
• Nigeria, others’ outlook vulnerable to high debt-servicing costs, weak revenue •Says borrowing costs to fall marginally by 2027 Emmanuel Addeh in Abuja Sub-Saharan Africa’s sovereign credit outlook has turned
Sub-Saharan Africa's sovereign credit outlook has turned positive for the first time in years, according to Moody's Ratings. The agency cites improved economic policies, stronger commodity prices, and better access to financing as factors that have helped governments strengthen their fiscal positions. However, the outlook remains vulnerable to high debt-servicing costs, weak government revenue mobilization, climate-related shocks, and security risks.
Only Botswana and Mauritius remain in the investment-grade category, while eight other sovereigns have positive outlooks, indicating potential future improvements. Nigeria, Africa's largest economy, is among these countries with improving credit fundamentals, despite facing significant fiscal and debt-management challenges. The region is projected to grow by 4.3% in 2026 and 2027, with government debt levels expected to stabilize at 56.6% of GDP by 2027.
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