Moody’s Turns Positive on Sub-Saharan Africa as Debt, Liquidity Improve

Moody’s Ratings stated that Sub-Saharan Africa’s sovereign credit outlook has turned positive for the first time in several years, citing improved economic policies, stronger commodity prices, and better access to financing as factors helping governments strengthen their fiscal positions. In a new regional assessment, the agency said reforms undertaken by several governments have helped the region withstand inflationary pressures, while improving liquidity conditions and stronger commodity revenues have eased some fiscal strain. However, Moody’s warned that the positive outlook remains vulnerable to high debt-servicing costs, weak government revenue mobilisation, climate-related shocks, and security risks. The agency also projected that borrowing costs will fall marginally by 2027.

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