1
Moody’s Ratings says sub-Saharan Africa’s credit outlook remains stable as growth accelerates, even amid high borrowing costs and weak revenue collection. The agency projects median growth of about 4.7% over 2025 and 2026, up from 3.8% over the past decade, with strong performers like Ethiopia, Senegal, and the DRC set to expand above 6%. Large infrastructure projects, including the Lobito railway and East Africa’s Standard Gauge Railway, alongside easing inflation, are expected to boost investment and consumer demand. However, Moody’s projects that South Africa will continue to lag, with growth below 1.5%. Despite these positive trends, the ratings agency cautions that social unrest tied to upcoming elections could still pose challenges as it could derail fiscal progress, thereby weakening the region’s long-term potential.
Bloomberg