President William Ruto spoke on Friday at a high-level Presidential Breakfast Dialogue in Addis Ababa, where he called for the establishment of an Africa Credit Rating Agency.
His remarks were made on the sidelines of the 37th African Union Summit, where he stressed the need for fair and independent assessments of African economies.
Ruto pointed out that Western credit rating agencies often exaggerate risks in African countries, making it difficult for them to secure affordable financing for development projects.
This results in high borrowing costs that hinder economic progress.Ruto argued that the global credit rating system is biased against Africa, making it hard for African nations to access financial support at reasonable rates.
He said that Africa must take charge of its financial future by setting up its own credit rating institution.
According to him, an African-led agency would provide more accurate assessments based on the continent’s economic realities and potential.
He emphasized that such a move would help African countries attract more investment and reduce dependency on Western financial institutions that have historically dictated unfavorable terms.
The proposal for an Africa Credit Rating Agency is not new, but Ruto’s push has given it renewed momentum.
Several African leaders and financial experts support the idea, arguing that it would enhance transparency, credibility, and financial independence across the continent.
Many African countries have long complained that international credit rating agencies such as Moody’s, Fitch, and Standard & Poor’s apply double standards when assessing African economies.
Even when African countries show economic resilience, these agencies tend to assign them lower ratings, increasing borrowing costs and discouraging investment.Ruto urged the African Union to move quickly in establishing the agency, calling it a crucial step toward the continent’s economic sovereignty.
He said that Africa cannot continue relying on institutions that do not understand its economic structures and challenges.
Instead, an independent African rating agency would help change the narrative about African economies and promote confidence among investors.
The discussion in Addis Ababa is expected to shape key decisions on how the proposed credit rating agency will be structured, funded, and governed.
Some African financial institutions have already shown interest in supporting the initiative, and experts believe that if properly implemented, it could change how African countries access global financial markets.
There is growing consensus among African nations that it is time to take control of their financial ratings and reduce reliance on external agencies that do not always act in the continent’s best interest.
The coming months will determine whether the African Union can turn this idea into reality.
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