Tinubu Backs African Credit Rating Agency, Demands Fair Assessment of African Economies

President Bola Ahmed Tinubu has welcomed the planned launch of the African Credit Rating Agency (AfCRA), saying Africa needs financial institutions capable of properly understanding and assessing the continent’s economies and risks.

Tinubu, in a statement on Friday, described the scheduled October 7 launch of AfCRA as another step towards building stronger African financial institutions.

The President said African countries were not seeking preferential treatment from credit rating agencies but fair assessments based on the actual fundamentals and reforms being implemented across their economies.

“Africa is not asking for favourable ratings. We are asking for fair ratings, grounded in our fundamentals and in the reforms our economies are actually carrying out,” Tinubu said.

The President recalled that he had advocated the establishment of an African credit rating agency in February in an article published by the Financial Times.

He said he reiterated the argument in May at the Africa CEO Forum in Kigali, Rwanda, where he spoke about the need for Africa to develop financial institutions with a deeper understanding of African economies.

According to Tinubu, the establishment of AfCRA represents progress towards that objective.

He, however, stressed that the new agency must demonstrate independence and maintain rigorous professional standards to gain the confidence of international investors and global capital markets.

“AfCRA must now earn the confidence of global capital. That confidence will rest on its independence and the rigour of its work,” he said.

The planned launch of AfCRA comes amid longstanding concerns among African policymakers and economists that international credit ratings may not always adequately reflect the economic fundamentals, reform efforts and investment opportunities on the continent.

African governments and institutions have increasingly pushed for stronger indigenous financial institutions and improved access to capital on terms that better reflect the continent’s economic realities.

Tinubu said he looked forward to the official launch of AfCRA on October 7.