Kenyan President William Ruto has urged the establishment of an African Credit Rating Agency (AfCRA) to counter biased financial assessments that negatively impact the continent’s economic prospects.
Speaking at a presidential breakfast during the 38th African Union summit in Addis Ababa, Ethiopia, Ruto criticized global credit rating agencies for distorting Africa’s financial reality. He argued that these agencies exaggerate risks, leading to inflated borrowing costs that hinder economic growth.
“The time has come to reclaim our narrative and drive Africa’s economic renaissance,” Ruto stated, emphasizing that the continent will no longer accept being judged unfairly by external rating systems.
The proposed agency, he explained, would complement existing global agencies by addressing analytical gaps and ensuring credit assessments are objective, transparent, and science-based. He highlighted research showing that even a one-level improvement in Africa’s average credit rating could unlock $15.5 billion in additional funding—surpassing official development assistance by 12% and covering 80% of Africa’s infrastructure needs.
Ruto praised efforts by the United Nations Development Programme and AfriCatalyst to enhance African nations’ creditworthiness, stressing the importance of real partnerships in transforming the continent’s financial landscape.