In recent times there has been an increased focus on the myriad investment opportunites in Africa. According to Pricewater Coopers (2011:1) “the continent is home to some of the world’s fastest-growing economies and offer the highest risk-adjusted returns on foreign direct investment among emerging economies.” Sovereign credit ratings plays an imperative role in the decision-making process of where and when to invest and determine the interest that is paid to investors for sovereign debt borrowings. Sovereign credit ratings are used by investors to improve the effectiveness of investment decisions for bonds and other fixed-income instruments (Standard and Poor’s, 2014).
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