UN agency, firm to host credit rating forum in Nairobi

Business
By James Wanzala | May 23, 2024
Credit ratings have become an important part of Africa's development financing landscape. [iStockphoto]

The United Nations Development Programme Africa (UNDP Africa) will next week host a high-level panel discussion on credit rating in partnership with Africatalyst.

Themed developing credit rating solutions for Africa's financial needs, the event will feature in-person sessions and virtual participation on the sidelines of the 59th annual meeting of the African Development Bank (AfDB) in Nairobi.

Panellists will explore the challenges associated with financing development in Africa, shedding light on the regulatory framework governing credit rating agencies while exploring alternative innovative solutions to empower governments to access critical financing.

Participants will include experts from government, academia, research, finance, private sector, civil society and development partners.

"Credit ratings have become an important part of Africa's development financing landscape. However, we're finding that the costs of those Eurobonds are usually really high and are linked to how African countries are rated," said Chief Economist and Head of Strategy, Analysis and Research at UNDP Africa Raymond Gilpin.

"Our high-level panel on May 28, 2024, will interrogate some of the issues relating to credit ratings their costs and practical things that African countries must do to lower the costs of borrowing."

The event will seek to evaluate the impact of credit ratings on investment decisions and access to international capital markets by African countries, examine the regulatory environment governing credit rating agencies and propose measures to mitigate negative effects.

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