BY NGOZI ONYEAKUSI


DataPro Limited has identified transparency, regulatory recognition and effective supervision as critical to strengthening Africa’s domestic credit rating industry and building confidence in local rating agencies.

The company said Africa’s credit rating challenge was not necessarily the shortage of rating agencies but the need to ensure that their ratings were recognised, trusted and increasingly used to guide financing decisions.

This formed the central focus of discussions at the 2026 Africa Rating Agencies Conference in Mauritius, where stakeholders examined factors limiting the wider adoption of domestic credit ratings across the continent.

According to DataPro, the discussions featured a roundtable convened by the United Nations Development Programme (UNDP) and AfriCatalyst on October 7, 2026, on the sidelines of the Second Africa Annual Conference on Credit Ratings and the launch of the Africa Credit Rating Agency (AfCRA).
More than 50 participants drawn from rating agencies, regulatory institutions, financial organisations, government, business associations and development partners were expected to attend the conference.

Speaking during the discussions, Managing Director of Metropol Corporation, Mr Samuel Omukoko, noted that while the supply of rating agencies and methodologies was relatively well structured, market demand remained underdeveloped.

Participants consequently identified greater awareness among borrowers and investors, alongside stronger regulatory recognition, as essential to expanding the use of credit ratings.

They noted that limited recognition by regulators and public institutions often prevents credit assessments from influencing lending, investment and public procurement decisions.

DataPro said participants also stressed that strengthening credibility, transparency and regulatory supervision would be critical to building confidence in domestic rating markets.

On cross-border integration and comparability, the discussions identified fragmented regulatory frameworks, varying licensing requirements and limited portability of credit information as major obstacles to assessing businesses across African markets.

President and Chief Executive Officer of the African Centre for Economic Transformation (ACET), Mavis Owusu-Gyamfi, emphasised the need to enable finance to follow businesses across borders, particularly as regional value chains expand.

The conference also highlighted measures to strengthen domestic rating markets and encourage wider adoption of credit assessments.

These include improved cooperation among regulators, exploring regional licensing arrangements to reduce market-entry barriers, and developing common reference points to help investors interpret credit risks consistently across jurisdictions.

Participants also called for broader access to data, including the use of reliable alternative sources such as transaction flows, utility and rental payments, supply-chain records and operational information. Such data, they noted, could improve the assessment of small and medium-sized enterprises (SMEs) with limited formal credit histories.

The discussions further underscored the potential of digital tools and artificial intelligence to reduce assessment costs and improve credit monitoring, while retaining professional judgement and appropriate oversight.

Participants also emphasised the need to strengthen analytical expertise and improve awareness of credit ratings among businesses, investors and other market participants.

The recommendations reflect the importance of greater regulatory consistency, transparency and regional cooperation in building stronger African credit rating markets without necessarily requiring agencies across the continent to adopt identical methodologies.