By Dorothy Musyoka
African leaders have taken a bold step toward financial sovereignty by advocating for the establishment of an Africa Credit Rating Agency (ACRA).
The initiative seeks to counter the systemic bias and outdated methodologies of global credit rating agencies, which have long misrepresented Africa’s economic realities, leading to inflated borrowing costs and constrained development financing.
During a High-Level Presidential Breakfast Dialogue in Addis Ababa, key African leaders, including Presidents William Ruto (Kenya), Tebboune Abdelmadjid (Algeria), Taye Atske Selassie (Ethiopia), and Hakainde Hichilema (Zambia), joined forces in support of the ACRA initiative.
“Africa will no longer accept to be misjudged by the scales of global credit rating agencies that overlook our reality,” stated President Ruto.
“By relying on flawed models, outdated assumptions, and systemic bias, these agencies have painted an unfair picture of our economies, leading to distorted ratings, exaggerated risks, and unjustifiably high borrowing costs,” added the President.
The discussions underscored the urgent need for a credit rating framework that reflects Africa’s true economic potential, rather than relying on externally imposed assessments that often exaggerate risks and stifle progress.
By providing fairer and more accurate credit ratings, ACRA aims to restore confidence in African financial markets, attract investment, and facilitate access to sustainable funding for critical development projects across the continent.
President Ruto highlighted the pivotal role that ACRA will play in breaking the limitations imposed by external rating agencies and unlocking Africa’s full economic potential.
“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,” noted Kenyan President.
The dialogue in Addis Ababa marks a significant milestone in Africa’s journey toward financial autonomy, setting the stage for further engagements with key stakeholders, investors, and development partners in making ACRA a reality
The proposed agency will be built on credible data, localized expertise, and a deep understanding of Africa’s unique economic landscape.