• African experts urge G20 to address bias in global credit ratings
• Report says unfair ratings raise borrowing costs, harm development efforts
• AU plans African Rating Agency by late 2025 to reflect regional realities

A panel of African experts warned G20 members on Tuesday that major credit rating agencies use methods they say unfairly disadvantage the continent’s economies. The experts, in a report released ahead of the G20 summit, called for stronger global oversight of the agencies.

The African Panel of Experts Chairperson, Trevor Manuel, has called on the global rating agencies to refrain from unfairly discriminating against African economies. Manuel says the continent presents a lot of opportunities amid its challenges and these agencies are not being fair… pic.twitter.com/oWoV1f0f74

— SABC News (@SABCNews) November 18, 2025

The report was led by former South African finance minister Trevor Manuel and included participants such as Nobel Prize-winning economist Esther Duflo and former African Development Bank president Donald Kaberuka. Created under South Africa’s G20 presidency, the panel argued that the ratings given to many African countries often fail to reflect their real economic fundamentals. The experts pointed to what they described as a “perception bias” that inflates assessments of African risk, drives up sovereign borrowing costs and restricts countries’ access to international financing. 

Among its main recommendations, the panel urged the G20 to require greater transparency from rating agencies. The proposals include the publication of rating models, detailed explanations for any sovereign downgrade and a more accurate assessment of the differences among African economies. The experts added that stronger oversight of credit rating agencies is now essential to support financing and development efforts across Africa. The report also calls for an end to automatic downgrades during crises, saying such actions often worsen financial pressures.

S&P, Moody’s and Fitch have repeatedly rejected allegations of bias, insisting their criteria are applied consistently worldwide.

In response to recurring criticism, the African Union is moving to set up its own African Rating Agency, which is expected in the second half of 2025. The project aims to produce assessments based on Africa’s economic realities and reduce reliance on international agencies. Some analysts, however, question whether a new body created by governments can significantly change investor perceptions.

Fiacre E. Kakpo