President argues African economies are unfairly judged by global agencies, calls for financial reform at AU summit and in Financial Times op-ed…..
President Bola Ahmed Tinubu has thrown his weight behind the creation of an Africa-led credit rating agency, saying the continent needs an independent system that can deliver fair, transparent and context-driven assessments of African economies.
Speaking at the 38th Ordinary Session of the Assembly of the African Union (AU) Heads of State and Government in Addis Ababa, Ethiopia, President Tinubu said the proposed Africa Credit Rating Agency (ACRA) would address long-standing concerns about bias in global credit evaluations.
“An independent Africa-led rating agency will help provide fairer assessments of African economies and reduce the bias often observed in existing global rating agencies,” Tinubu said during his address to fellow African leaders.
He commended the African Union (AU), the African Development Bank (AfDB), and the Specialised Technical Committee (STC) on Finance for what he described as visionary leadership in advancing an African framework for financing development across member states.
According to the President, the Africa Financing Stability Mechanism (AFSM) is particularly critical at a time when the continent is grappling with mounting financial pressures.
He identified rising borrowing costs, persistent debt overhang, weak domestic resource mobilisation and limited access to long-term affordable financing as major constraints on development.
“The establishment of the AFSM underscores the collective commitment of member states to addressing financial vulnerabilities and fostering economic resilience across the continent,” Tinubu said.
He added that the mechanism is designed to support member states in achieving national development objectives while expanding economic opportunities for citizens.
Tinubu also referenced progress made during the 5th Extraordinary Session of the Specialised Technical Committee on Finance held in November 2024 in Abuja, where key decisions were reached on strengthening Africa’s financial architecture.
“The adoption of the AFSM by member states is expected to enhance financial stability, strengthen resilience against external shocks and provide a more coordinated approach to managing financial risks across the continent,” he said.
Africa ‘Premium’ Under Scrutiny
In a related development, Tinubu renewed his call for an Africa-owned rating system in an opinion article published in the Financial Times on Monday.
In the piece, the Nigerian leader argued that African countries are burdened by what he described as the “Africa premium” the gap between perceived and actual economic risk which results in excessively high borrowing costs.
He warned that the situation is no longer sustainable, stressing that flawed external assessments are distorting investor perception and limiting access to affordable capital.
Tinubu pointed to the outsized influence of the three dominant global rating agencies Fitch Ratings, Moody’s, and S&P Global Ratings whose ratings, he said, significantly shape investor behaviour but often fail to fully reflect local economic realities.
By advocating for an Africa-led alternative, the President signalled a broader push for reforms in global financial governance and a recalibration of how African risk is measured in international markets.
Tinubu maintained that strengthening Africa’s financial independence through mechanisms such as the AFSM and a continent-owned rating agency would not only improve credit transparency but also unlock more sustainable and affordable financing for development.
His remarks come amid ongoing discussions among African leaders on how to reduce vulnerability to external shocks and reposition the continent within the global financial system.
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