The establishment of the Africa Credit Rating Agency (AfCRA) has been strongly supported by President William Ruto, who has criticized international credit rating agencies.
On February 14, 2025, Ruto spoke at the Presidential Dialogue on AfCRA in Addis Ababa, Ethiopia, emphasizing how a financial system that distorts the continent’s reality undermines Africa’s economic potential.
The African Peer Review Mechanism (APRM) hosted the event during the 37th AU Ordinary Summit, which brought together financial experts, policymakers, and leaders to discuss the creation of an African-specific credit rating agency.
According to Ruto, international organizations have let the continent down by using antiquated models that provide unjust and biased evaluations.
Exaggerated dangers, skewed representations of African economies, and unreasonably high borrowing prices are the outcomes.
“Africa pays a heavy price for these biased evaluations,” Ruto stated.
“They discourage investment, skew international trade, and impede the achievement of sustainable development goals.”
According to the APRM and the UNDP, the cost of missed potential is estimated at $75 billion.
He emphasized that skewed credit ratings deny African countries opportunity.
Ruto noted that only two African nations have been designated as investment grade by credit rating agencies in the last ten years, despite the continent’s abundance of natural resources, fertile land, and sizable diaspora remittances.
In order to appropriately represent Africa’s economic realities, Ruto emphasized that AfCRA must be believable and based on solid data.
He underlined that African leaders would hold international organizations to their standards while working together on common ideals of fairness, dignity, and advancement.
AfCRA is a continental initiative that seeks to provide credit ratings that are independent and owned by Africans.
In favor of Africa’s financial freedom and integration, it will formally begin in June 2025.
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