https://en.sputniknews.africa/20240721/au-induced-ratings-company-for-africa-expected-by-next-year-official-says-1067585724.html
AU-Induced Ratings Company for Africa Expected by Next Year, Official Says
AU-Induced Ratings Company for Africa Expected by Next Year, Official Says
Sputnik Africa
The 6th Mid-Year Coordination Meeting of the African Union (AU) took place on July 18-21 in Accra, Ghana. Every meeting represents a significant gathering... 21.07.2024, Sputnik Africa
2024-07-21T18:09+0200
2024-07-21T18:09+0200
2024-07-21T18:09+0200
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A credit ratings company that is being established to address the specific needs of Africa's sovereign borrowers is expected to be operational by the end of the year, said Albert Muchanga, the AU's commissioner for development, trade, tourism, industry, and minerals, speaking to reporters in Accra, Ghana.The institution will be independent and not owned by the African Union, he added.The initiative is being carried out by the African Peer Review Mechanism, African Development Bank, African Export-Import Bank, and the AU Commission. Muchanga said they are currently in the phase of developing the final work plan to ensure its implementation.The idea was first proposed by African finance ministers in 2021 due to concerns about unfair treatment by international credit rating firms, which they said resulted in higher interest rates compared to other emerging markets and developed countries.Last year, the African Union's Technical Committee of Finance Ministers pledged their support for the African Credit Rating Agency (CRA), emphasizing principles of self-financing and sustainability. In April, the UN Economic Commission for Africa, alongside the African Peer Review Mechanism, hosted a retreat in Zambia to discuss the establishment of the CRA.
https://en.sputniknews.africa/20240423/historic-move-creating-african-cra-allows-shaping-narrative-on-risk--investment-expert-says-1066201851.html
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african development bank (afdb), african union (au), ghana, economy, west africa, finance, afreximbank, development
AU-Induced Ratings Company for Africa Expected by Next Year, Official Says
The 6th Mid-Year Coordination Meeting of the African Union (AU) took place on July 18-21 in Accra, Ghana. Every meeting represents a significant gathering where AU leaders and officials review progress, coordinate efforts, and align strategies to achieve continental priorities and integration agendas.
A credit ratings company that is being established to address the specific needs of Africa's sovereign borrowers is expected to be operational by the end of the year, said Albert Muchanga, the AU's commissioner for development, trade, tourism, industry, and minerals, speaking to reporters in Accra,
Ghana.The institution will be independent and not owned by the
African Union, he added.
“We feel that we’ve not been treated very well when it comes to ratings and the cost of borrowing,” Muchanga was quoted as saying by media. “We want an institution developed by Africans to contribute to the process of de-risking the African capital market so that in the end we are able to have a situation where we can borrow competitively at home and abroad.”
The initiative is being carried out by the African Peer Review Mechanism, African Development Bank,
African Export-Import Bank, and the AU Commission. Muchanga said they are currently in the phase of developing the final work plan to ensure its implementation.
The idea was first proposed by African finance ministers in 2021 due to concerns about unfair treatment by international credit rating firms, which they said resulted in higher interest rates compared to other emerging markets and developed countries.
Last year, the African Union's Technical Committee of Finance Ministers pledged their support for the African Credit Rating Agency (CRA), emphasizing principles of self-financing and sustainability. In April, the UN Economic Commission for Africa, alongside the African Peer Review Mechanism, hosted a retreat in
Zambia to discuss the establishment of the CRA.
