S&P: African sovereigns improve

Domestic momentum for economic and political reform in Africa has been crucial to the region's improving rating prospects. This is one of the main findings in two research reports published recently by Standard & Poor's.

High commodity prices worldwide, robust global trade and massive external debt forgiveness have contributed to several years of solid growth, but reform has been the main driver, S&P said.

The continent continues to face many challenges, however and countries need to sustain the momentum for good policy implementation over the long term, the agency said.

The commodity price boom has been a mixed blessing for African sovereigns, S&P added. Only four of the 13 sub-Saharan sovereigns rated by S&P have experienced an improvement in their terms of trade since 2003: Nigeria, Mozambique, Cameroon and Benin. The rest have faced a downturn, with Burkina Faso, Ghana and Madagascar experiencing the worst deterioration, the agency said.

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