Global credit rating firms are deepening their bet on Africa by acquiring some of the continent’s leading domestic ratings agencies, just as African policymakers prepare to launch the continent’s first homegrown credit rating agency in a move that could reshape how global investors assess African sovereigns and companies.
S&P Global’s acquisition of Nigeria’s Agusto & Co., following Moody’s purchases of Global Credit Ratings (GCR), West Africa Rating Agency (WARA) and Egypt’s Middle East Ratings and Investors Service (MERIS), signals that international rating firms increasingly view local expertise as a competitive advantage rather than something that can be replicated from London or New York.
The acquisitions come as African governments rely more heavily on domestic debt markets to finance infrastructure and budget deficits, while private companies increasingly tap local capital markets for long-term funding.
At the same time, criticism of global rating methodologies has intensified, with African leaders arguing that sovereign
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