Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa (UNECA), pointed out that establishing an Africa Credit Rating Agency (CRA) is essential for driving the continent’s economic development and financial independence.
Speaking at a high-level dialogue in New York, Gatete highlighted the challenges African nations face due to the low credit ratings issued by international agencies like S&P Global Ratings, Moody’s, and Fitch.
These ratings, he noted, often do not accurately reflect Africa’s economic realities and exacerbate the continent’s fiscal difficulties.
Gatete asserted that Africa’s debt crisis, with USD163 billion in interest payments expected in 2024, is worsened by downgrades from these agencies, which increase borrowing costs and reduce investor confidence.
He stressed the need for an African Credit Rating Agency, which would offer an African-centered perspective on creditworthiness and help reform the global financial system. UNECA is supporting this initiative through technical assistance and capacity building, with the goal of improving Africa’s credit ratings and promoting financial market development across the continent.
However, challenges remain in terms of ensuring transparency, building credibility.
For the CRA to succeed, robust governance structures, technical expertise, and partnerships with global financial institutions are essential. If these factors are addressed, the CRA could play a transformative role in Africa’s economic progress.
Further Africa
