Moody’s has given sub-Saharan Africa a stable credit outlook, saying the region is set for stronger growth through 2025 and 2026. The global ratings agency, in a new report cited by Bloomberg, believes that faster economic activity will help governments tackle debt burdens while boosting much-needed revenues.
According to the forecast, regional growth could average 4.7 percent, driven by rising global demand for commodities, new infrastructure spending, and easing inflation. This stronger momentum, Moody’s notes, should strengthen fiscal positions and keep sovereign credit ratings steady across most economies.
![Image of African city skyline with construction cranes and busy streets]
Still, the picture isn’t all rosy. South Africa’s economy is projected to crawl at less than 1.5 percent, weighed down by structural weaknesses. Nigeria and Kenya, meanwhile, continue to wrestle with high borrowing costs and stubborn inflation. Political uncertainty and weak revenue collection also linger as potential risks in the coming election cycles.
Moody’s expects debt levels to gradually decline as governments improve tax revenues and keep spending in check. But financing costs remain high, meaning reforms will be crucial to avoid fiscal pressure.
![Image showing African finance ministers at a regional economic summit]
In the end, the agency’s view is cautiously optimistic: the next two years could bring healthier growth and more stable credit outlooks, but without deeper reforms, structural bottlenecks and market volatility may still hold back Africa’s full potential.
