South African Reserve Bank Governor Lesetja Kganyago called on Thursday for developing nations to challenge global ratings agencies’ methodologies. Speaking after the Group of 20 finance chiefs meetings in Washington, Kganyago argued transparency in ratings could improve financial outcomes for emerging economies.
“If we can examine the methodology and data, we can replicate it and challenge agencies when their ratings appear inaccurate,” he said. South Africa, holding the G20 presidency this year, pledged to tackle the high cost of capital for developing countries.
The central bank governor highlighted the significant role that credit rating agencies play in shaping investment flows and economic opportunities. However, a proposed commission to examine these concerns remains unestablished, despite being outlined in the presidency’s policy priorities at the year’s start.
The initiative seeks to explore barriers to affordable capital, including distortions linked to ratings agencies’ opaque methodologies and practices. During the fourth G20 meeting under South Africa, finance ministers issued a Chair Summary instead of a formal communique, reflecting unresolved consensus.
The summary praised global economic resilience while warning of risks from geopolitical tensions, supply chain disruptions, high debt, and extreme weather events. It stressed the need to address imbalances, particularly for developing nations facing fiscal pressures and limited growth potential.
The group also discussed unequal artificial intelligence development, highlighting the need for reforms at multilateral banks to boost lending and representation. South Africa will transfer the G20 presidency to the United States in November, concluding its focus on inclusive development and economic transparency.