Nigerian President Bola Ahmed Tinubu has expressed strong support for the newly established African Credit Rating Agency (AfCRA), highlighting its role in ensuring fairer and more transparent credit evaluations for African economies.
The African Union (AU) launched AfCRA on Friday to address concerns over bias in global credit rating firms, which have been accused of unfairly assessing African economies.
Push for Financial Independence
Tinubu commended the AU, the African Development Bank (AfDB), and the Specialised Technical Committee (STC) on Finance for spearheading an African-led financial framework.
“An independent, Africa-led rating agency will promote fairer assessments of African economies and help counter the bias often seen in global rating agencies,” he said in a statement released by his special adviser on information and strategy, Bayo Onanuga.
Africa Financing Stability Mechanism
The president also underscored the significance of the Africa Financing Stability Mechanism (AFSM) in tackling key financial challenges, including high borrowing costs, debt burdens, low domestic revenue generation, and limited access to long-term, affordable funding.
“The AFSM reaffirms the collective resolve of member states to address financial vulnerabilities and build economic resilience. It is designed to support national development goals while creating economic opportunities for citizens,” Tinubu added.
The adoption of AFSM was a key outcome of the 5th Extraordinary Session of the Specialized Technical Committee on Finance, held in Abuja in November 2025. Tinubu noted that the mechanism would help stabilise African economies, protect against external shocks, and create a more coordinated approach to managing financial risks.
Kenya’s Ruto Criticises Global Rating Firms
Kenyan President William Ruto officially launched AfCRA at an AU event in Addis Ababa, Ethiopia.
“Global credit rating agencies have not only disadvantaged Africa but have also deliberately undermined its potential,” Ruto stated.
A report by the Africa Peer Review Mechanism and the United Nations Development Programme found that biased ratings have cost Africa around $75 billion in lost opportunities.
The AU has previously criticised international rating agencies for their portrayal of African economies. In January, it pointed out inconsistencies in Moody’s Ratings’ fluctuating assessments of Kenya’s economic outlook.
A Step Towards Financial Sovereignty
“As Africa advances towards economic integration and resilience, the launch of the African Credit Rating Agency marks a significant milestone in strengthening the continent’s influence in global financial governance,” Ethiopia’s ENA news agency reported.
AfCRA is expected to provide fair, transparent, and development-driven credit ratings that better reflect Africa’s economic realities and potential. The AU formally announced its commitment to the project in September 2023, following years of discussion.
This move follows growing concerns over the practices of Moody’s, Fitch, and S&P—often accused of applying a negative bias in their assessments of African economies. Critics argue that such ratings drive up borrowing costs and limit access to international financial markets.
Credit: Nairametrics (Text Excluding Headline)
