African nations are facing significant additional financing costs due to credit-rating agencies' inflated risk perceptions, according to Standard Bank Group Ltd. CEO Sim Tshabalala.

Tshabalala highlighted a study by the United Nations Development Programme that revealed these subjective risk assessments have resulted in an estimated $75 billion in extra costs and lost revenue for the continent. He criticized the financial burden imposed by these ratings as unreasonable and emphasized the negative impact on Africa's economic growth and development.

This underscores the need for a reevaluation of how credit risks are assessed for African countries, which often experience higher borrowing costs due to these inflated perceptions.