Instead, the push for credit ratings set these nations on a path to debt many could not afford. Over the past two decades, more than a dozen sub-Saharan countries borrowed nearly $200 billion from overseas bond investors, according to World Bank figures. Several African nations ended up defaulting on their bonds or struggling to pay debts. They “do not know what methodologies or criteria are used by credit rating agencies,” Takawira told Reuters. Several African nations ended up defaulting on their bonds or struggling to pay debts after Covid hit.

Source: Daily Nation August 02, 2024 09:25 UTC