African sovereign credit ratings have climbed to their highest levels in more than five years, supported by stronger economic growth and reform efforts across the continent, according to S&P Global Ratings.
The ratings agency said improved macroeconomic conditions are helping to stabilize African economies, easing financing pressures and lowering borrowing costs for several governments. Slowing inflation, firmer commodity prices and stronger local currencies have all contributed to the more positive credit outlook.
S&P noted that the gains reflect sustained reform momentum in multiple countries, alongside resilient growth. Average real economic growth across rated African sovereigns is projected at about 4.5%, while fiscal positions are expected to remain broadly stable. Budget deficits are forecast to narrow modestly to an average of 3.5% of gross domestic product in 2026, down from 3.7% in 2025, with government debt holding at roughly 61% of GDP.
Despite the improved backdrop, S&P cautioned that external debt pressures remain significant. Principal external debt repayments for rated African countries are estimated at about $90 billion in 2026, more than three times the level recorded in 2012 and close to a historic peak.
Egypt accounts for nearly one-third of the total, with around $27 billion due in 2026, making it the largest debtor among rated African sovereigns. Angola, South Africa and Nigeria are also among the countries facing sizable repayment obligations.
The ratings agency said strong prices for key commodities such as gold and copper are expected to support fiscal and external balances in several economies, including South Africa, Zambia, Guinea, Uganda, Ethiopia, the Democratic Republic of Congo, Ghana and Rwanda.
In South Africa, S&P said risks associated with state-owned utilities, particularly power utility Eskom, are expected to ease, although logistics group Transnet will likely continue to require government support. The agency highlighted South Africa’s deep and sophisticated domestic financial system as a key strength, providing a reliable funding base. It added that the country could see a credit rating upgrade if fiscal imbalances narrow faster than expected and growth-enhancing reforms are sustained.
S&P warned, however, that risks to the generally positive outlook remain. A more fragmented global environment, shifting trade relationships and geopolitical realignments could increase uncertainty around global growth, heighten volatility in commodity demand and complicate fiscal planning for African governments.
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