President William Ruto speaking at the AU Side event in Addis Ababa, Ethiopia on February 14, 2025
Souece: Africa Publicity
In a bold move, Kenya’s President William Ruto has declared that Africa will no longer tolerate being misjudged by global credit rating agencies that overlook the continent’s reality.
Speaking at the African Union side event – a presidential dialogue on the establishment of an African Credit Rating Agency – on February 14, 2025, President Ruto emphasized the need for an African Credit Rating Agency to provide fair and accurate assessments of African economies.
Ruto criticized global credit rating agencies for relying on flawed models, outdated assumptions, and systemic bias, resulting in distorted ratings, exaggerated risks, and unjustifiably high borrowing costs. He argued that these agencies have painted an unfair picture of African economies, hindering the continent’s development and progress.
“The establishment of an Africa Credit Rating Agency, backed by credible data that accurately reflects Africa’s reality, will unlock the much-needed finance to fund the continent’s development programmes and bring meaningful change to the people,” Ruto stated.
The call for an African Credit Rating Agency is part of a broader effort to reclaim economic sovereignty and create a more equitable financial environment for African nations. Research has shown that a one-level improvement in Africa’s average credit rating could unlock $15.5 billion in additional funding, outstripping official development assistance by 12% and meeting 80% of the continent’s infrastructure needs.
As Africa takes a stand against global credit rating agencies, the establishment of an African Credit Rating Agency is seen as a crucial step towards achieving fair and accurate assessments of African economies.
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