Fitch Ratings expects the outlook for sub-Saharan African sovereigns to be neutral in 2025.

This reflects a stronger macroeconomic outlook and modest fiscal consolidation balanced against still-challenging financing conditions and political and insecurity risks.

“We forecast growth will improve driven by reforms and recovery from drought”, it disclosed in a report.

It pointed out that momentum in Nigeria and South Africa, the two largest Sub-Saharan African economies, will generate positive spillovers.

It explained that tighter policy should help tame inflation, adding that improved growth and fiscal reforms should reduce regional government debt to Gross Domestic Product ratio, while lower policy rates will ease domestic financing costs.

However, median average financing costs will rise further, and interest/revenues will be uncomfortably high for many countries in the region.

It concluded that financing challenges will remain, particularly for those at the lower end of the rating scale such as Ghana and Zambia.

However, the three Common Framework restructurings are expected to be completed in 2025.