S&P Global Strengthens Presence in Africa with Agusto & Co Acquisition

S&P Global Ratings has announced a significant expansion into the African market through its acquisition of a majority stake in Agusto & Co, a leading credit rating agency operating across Nigeria, Kenya, Rwanda, and Ghana. This move underscores the growing importance of local expertise combined with global analytical capabilities in Africa’s evolving financial landscape.

The acquisition aligns with S&P Global’s broader strategy to deepen credit markets on the continent, particularly as investor interest grows but fragmented systems hinder capital flow. Samira Mensah, Head of S&P Global’s Africa National Ratings, notes that while Africa possesses substantial domestic savings, channeling this capital into long-term productive investments remains a challenge.

Strategic Significance for Nigeria

Nigeria represents a central market in S&P’s African strategy, with Mensah emphasizing that “no African strategy is complete without Nigeria.” The country’s large economy and evolving financial sector make it an ideal hub for expanding credit markets.

The combination of S&P’s international experience with Agusto & Co’s local knowledge will create a more nuanced assessment framework tailored to individual market characteristics. As Mensah explains, “National ratings speak to the specificity of an individual market—one solution does not fit all.”

Addressing Criticisms and Enhancing Accuracy

This acquisition comes as global rating agencies face increasing scrutiny over their assessments of African markets. By incorporating local expertise, S&P aims to provide more contextualized and accurate ratings that reflect the unique dynamics of each jurisdiction.

The inclusion of the GEMS database—which tracks credit-loss experience across multilateral development banks—into S&P’s risk framework is expected to further enhance data quality and inform investment decisions.

This strategic move positions S&P Global as a key player in Africa’s financial evolution, supporting the continent’s drive toward greater capital market sophistication and sustainable growth.