African credit outlook stable as growth picks up, Moody’s says

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Economic growth in sub-Saharan Africa will accelerate this year and next, underpinning the region’s stable credit outlook despite high financing costs and weak revenue collection, said Moody’s Ratings.“Growth will be solid and, alongside increasing revenue generation, will support a gradual reduction in debt,” it said in a report on Tuesday, noting the outlook could turn positive if tax collection improves, while weakening fiscal consolidation would point the other way.

Moody’s forecast median annual economic growth of about 4.7% over 2025 and 2026 compared with 3.8% over the past decade, with 10 of the 25 countries in the region expanding 6% or more, including Ethiopia, Senegal and the Democratic Republic of Congo.