Brief
Moody's lifts outlook for sub‑Saharan Africa to positive
The rating agency says reforms and strong commodity markets have improved fiscal positions across the region.
By Felo News Desk · Published
Moody's upgraded its outlook for sub‑Saharan African countries to positive on 7 October 2026, saying reforms helped them weather inflationary pressures while strong commodity prices and easier access to financing improved fiscal positions, according to Reuters.
The agency cautioned that heavy debt‑repayment burdens, limited government income and risks from climate change and regional security threats remain major weak spots. It expects regional economies to grow 4.3 % in both 2026 and 2027, measured as a weighted average across countries.
Moody's forecasts the share of GDP that governments need to borrow each year to cover deficits and repay maturing debt will fall to 11.2 % in 2027 from a peak of 12.3 % in 2025, and total government debt will level off at 56.6 % of GDP in 2027, down from 62.4 % in 2025.
Only Botswana and Mauritius are rated investment‑grade; eight countries have positive outlooks, including South Africa and Nigeria, while four remain negative.
Key facts
- Moody's raised its outlook for sub‑Saharan African countries to positive on 7 Oct 2026. (bizcommunity.com)
- The agency expects regional economies to grow 4.3 % in 2026 and 2027. (bizcommunity.com)
- Government borrowing needs are projected to fall to 11.2 % of GDP in 2027. (bizcommunity.com)
- Total government debt is forecast to level off at 56.6 % of GDP in 2027. (bizcommunity.com)
Sources
- [1] bizcommunity.com — originally reported as “Moody's turns positive on sub-Saharan African countries”
