Moody’s turns positive on sub-Saharan Africa as debt pressures ease

Moody’s has raised its outlook for sub-Saharan Africa to positive, citing economic reforms, strong commodity prices and improved access to financing that have helped countries withstand inflationary pressures and strengthen their fiscal positions. Read also: nigeria-easily-get-3-5bn-foreign-debt-moodys-says The ratings agency expects economies across the region to grow at an average rate of 4.3 percent in both 2026 and 2027, while government borrowing needs and debt levels are expected to decline. Moody’s forecasts that the amount governments need to raise each year to finance budget deficits and refinance maturing debt will fall to 11.2 percent of gross domestic product in 2027, from a peak of 12.3 percent in 2025. Total government debt is also expected to ease to 56.6 percent of GDP in 2027, down from 62.4 percent in 2025, reflecting improving fiscal positions in several countries. Read also: botswana-sees-second-moodys-downgrade-in-a-year-as-diamond-slump-deepens Zambia and Ethiopia are expected to record the largest declines in debt levels. Botswana, which has been hit by weak diamond demand, and Gabon, where government spending remains difficult to contain, are projected to see the sharpest increases. Despite the improved outlook, Moody’s warned that heavy debt repayment burdens, weak government revenues, climate risks and regional security threats remain significant challenges for the region. Kenya and Zambia are expected to face particularly high debt servicing costs, with each projected to spend about 35 percent of government revenue on interest payments in 2027, the highest level among countries in the region. The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: nigeria-easily-get-3-5bn-foreign-debt-moodys-says The ratings agency expects economies across the region to grow at an average rate of 4.3 percent in both 2026 and 2027, while government borrowing needs and debt levels are expected to decline. Moody’s forecasts that the amount governments need to raise each year to finance budget deficits and refinance maturing debt will fall to 11.2 percent of gross domestic product in 2027, from a peak of 12.3 percent in 2025. Total government debt is also expected to ease to 56.6 percent of GDP in 2027, down from 62.4 percent in 2025, reflecting improving fiscal positions in several countries. Read also: botswana-sees-second-moodys-downgrade-in-a-year-as-diamond-slump-deepens Zambia and Ethiopia are expected to record the largest declines in debt levels. Botswana, which has been hit by weak diamond demand, and Gabon, where government spending remains difficult to contain, are projected to see the sharpest increases. Despite the improved outlook, Moody’s warned that heavy debt repayment burdens, weak government revenues, climate risks and regional security threats remain significant challenges for the region. Kenya and Zambia are expected to face particularly high debt servicing costs, with each projected to spend about 35 percent of government revenue on interest payments in 2027, the highest level among countries in the region. The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The ratings agency expects economies across the region to grow at an average rate of 4.3 percent in both 2026 and 2027, while government borrowing needs and debt levels are expected to decline. Moody’s forecasts that the amount governments need to raise each year to finance budget deficits and refinance maturing debt will fall to 11.2 percent of gross domestic product in 2027, from a peak of 12.3 percent in 2025. Total government debt is also expected to ease to 56.6 percent of GDP in 2027, down from 62.4 percent in 2025, reflecting improving fiscal positions in several countries. Read also: botswana-sees-second-moodys-downgrade-in-a-year-as-diamond-slump-deepens Zambia and Ethiopia are expected to record the largest declines in debt levels. Botswana, which has been hit by weak diamond demand, and Gabon, where government spending remains difficult to contain, are projected to see the sharpest increases. Despite the improved outlook, Moody’s warned that heavy debt repayment burdens, weak government revenues, climate risks and regional security threats remain significant challenges for the region. Kenya and Zambia are expected to face particularly high debt servicing costs, with each projected to spend about 35 percent of government revenue on interest payments in 2027, the highest level among countries in the region. The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Moody’s forecasts that the amount governments need to raise each year to finance budget deficits and refinance maturing debt will fall to 11.2 percent of gross domestic product in 2027, from a peak of 12.3 percent in 2025. Total government debt is also expected to ease to 56.6 percent of GDP in 2027, down from 62.4 percent in 2025, reflecting improving fiscal positions in several countries. Read also: botswana-sees-second-moodys-downgrade-in-a-year-as-diamond-slump-deepens Zambia and Ethiopia are expected to record the largest declines in debt levels. Botswana, which has been hit by weak diamond demand, and Gabon, where government spending remains difficult to contain, are projected to see the sharpest increases. Despite the improved outlook, Moody’s warned that heavy debt repayment burdens, weak government revenues, climate risks and regional security threats remain significant challenges for the region. Kenya and Zambia are expected to face particularly high debt servicing costs, with each projected to spend about 35 percent of government revenue on interest payments in 2027, the highest level among countries in the region. The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Total government debt is also expected to ease to 56.6 percent of GDP in 2027, down from 62.4 percent in 2025, reflecting improving fiscal positions in several countries. Read also: botswana-sees-second-moodys-downgrade-in-a-year-as-diamond-slump-deepens Zambia and Ethiopia are expected to record the largest declines in debt levels. Botswana, which has been hit by weak diamond demand, and Gabon, where government spending remains difficult to contain, are projected to see the sharpest increases. Despite the improved outlook, Moody’s warned that heavy debt repayment burdens, weak government revenues, climate risks and regional security threats remain significant challenges for the region. Kenya and Zambia are expected to face particularly high debt servicing costs, with each projected to spend about 35 percent of government revenue on interest payments in 2027, the highest level among countries in the region. The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: botswana-sees-second-moodys-downgrade-in-a-year-as-diamond-slump-deepens Zambia and Ethiopia are expected to record the largest declines in debt levels. Botswana, which has been hit by weak diamond demand, and Gabon, where government spending remains difficult to contain, are projected to see the sharpest increases. Despite the improved outlook, Moody’s warned that heavy debt repayment burdens, weak government revenues, climate risks and regional security threats remain significant challenges for the region. Kenya and Zambia are expected to face particularly high debt servicing costs, with each projected to spend about 35 percent of government revenue on interest payments in 2027, the highest level among countries in the region. The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Zambia and Ethiopia are expected to record the largest declines in debt levels. Botswana, which has been hit by weak diamond demand, and Gabon, where government spending remains difficult to contain, are projected to see the sharpest increases. Despite the improved outlook, Moody’s warned that heavy debt repayment burdens, weak government revenues, climate risks and regional security threats remain significant challenges for the region. Kenya and Zambia are expected to face particularly high debt servicing costs, with each projected to spend about 35 percent of government revenue on interest payments in 2027, the highest level among countries in the region. The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Despite the improved outlook, Moody’s warned that heavy debt repayment burdens, weak government revenues, climate risks and regional security threats remain significant challenges for the region. Kenya and Zambia are expected to face particularly high debt servicing costs, with each projected to spend about 35 percent of government revenue on interest payments in 2027, the highest level among countries in the region. The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Kenya and Zambia are expected to face particularly high debt servicing costs, with each projected to spend about 35 percent of government revenue on interest payments in 2027, the highest level among countries in the region. The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The agency also warned that a prolonged rise in inflation, severe weather events or a sudden withdrawal of investors from African bond markets could weaken the outlook. Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Only two of the 25 sub-Saharan African countries rated by Moody’s, Botswana and Mauritius, currently have investment grade ratings, meaning the agency considers them relatively low-risk borrowers. Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: moodys-places-nigerias-ba3-credit-rating-on-review-for-downgrade/?amp Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Eight countries have positive outlooks: South Africa, Namibia, Angola, Nigeria, Togo, Ghana, Republic of Congo and Zambia. Thirteen have stable outlooks, while four, Mauritius, Gabon, Mali and Senegal, have negative outlooks. The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The shift to a positive regional outlook reflects a more favourable fiscal picture in several economies, supported by higher commodity revenues and greater access to financing. It also points to the gains from reforms as governments work to reduce the pressure created by years of elevated inflation, debt and financing costs. Related News Explainer: Why CBN wants banks to strengthen cyber resilience as digital banking expands Relief for manufacturers as Dangote reduces diesel price by N80 Nigeria is attracting more dollars, but the naira is barely responding Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.