South Africa has urged major credit rating agencies to improve transparency in their assessment processes, saying that greater clarity could help developing nations secure fairer borrowing terms. Speaking at the G20 finance ministers and central bank governors meeting in Washington, South African Reserve Bank Governor Lesetja Kganyago called for open access to the methodologies used by rating firms, arguing that this would make their decisions more accountable and easier to challenge.
Kganyago noted that under South Africa’s G20 presidency, reducing high borrowing costs for developing economies has become a top priority. He expressed concern that a proposed commission to review rating practices and financing conditions for emerging markets has yet to be implemented, despite widespread agreement on its importance.
The G20 meeting, which ended with a Chair’s Summary rather than a joint communique, acknowledged ongoing risks facing the global economy, including heavy debt burdens, disrupted supply chains, and geopolitical tensions. Delegates also emphasized the need for growth-focused fiscal and monetary policies to stabilize fragile economies, as reported by Reuters.
Analysts say South Africa’s stance could drive broader reform in the global financial system by encouraging more transparency and fairness in credit assessments. If adopted, such reforms could help developing countries attract capital at lower costs and strengthen their resilience against future financial shocks, Reuters added.
