https://en.sputniknews.africa/20250215/creating-african-credit-rating-agency-is-imperative-due-to-global-agencies-bias-ruto-says-1070665286.html
Creating African Credit Rating Agency is 'Imperative' Due to Global Agencies' Bias, Ruto Says
Creating African Credit Rating Agency is 'Imperative' Due to Global Agencies' Bias, Ruto Says
Sputnik Africa
The establishment of the African Credit Rating Agency, backed by credible data that accurately reflects Africa’s reality, will unlock the much-needed finance... 15.02.2025, Sputnik Africa
2025-02-15T11:18+0100
2025-02-15T11:18+0100
2025-02-17T12:31+0100
william ruto
kenya
africa
sub-saharan africa
african union (au)
ethiopia
east africa
addis ababa
summit
finance
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The establishment of the African Credit Rating Agency (ACRA) is "imperative" due to the bias of global agencies, Kenyan President William Ruto said on Friday.He noted that global credit agencies rely on skewed data and systemic bias in their calculations, putting African economies in an unfavorable light and distorting credit ratings. According to Kenya's top official, the principles of fairness, transparency, and merit, on which global finance should be based, are not respected when it comes to Africa.The president also stressed ACRA's ability to unlock $15.5 billion in funding and address 80% of Africa’s infrastructure needs.The African Union plans to launch a new African credit rating agency in the second half of 2025, the AU African Peer Review Mechanism said in a report titled "Africa Sovereign Credit Rating Outlook—2024 Year-End Review."
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william ruto, kenya, africa, african union (au), ethiopia, east africa, addis ababa, summit, finance, economy, west, bias
Creating African Credit Rating Agency is 'Imperative' Due to Global Agencies' Bias, Ruto Says
11:18 15.02.2025 (Updated: 12:31 17.02.2025) Elizaveta Roschina
Writer/Editor
The establishment of the African Credit Rating Agency, backed by credible data that accurately reflects Africa’s reality, will unlock the much-needed finance to fund the continent’s development programs and bring meaningful change to the people, the Kenyan president said.
The
establishment of the African Credit Rating Agency (ACRA) is "imperative" due to the bias of global agencies, Kenyan President William Ruto said on Friday.
"An African credit rating agency is not just an alternative; it is an imperative. This agency must be globally credible and backed by rigorous, credible data and driven by high reporting standards from our own governments. But more importantly, it must reflect Africa’s reality correctly," Ruto stated, addressing the session on the establishment of the ACRA on the sidelines of the 38th AU Summit in Addis Ababa.
He noted that global credit agencies rely on skewed data and systemic bias in their calculations, putting African economies in an unfavorable light and distorting credit ratings.
"Global credit rating agencies have not only dealt us a bad hand; they have also deliberately failed Africa," the Kenyan president emphasized.
According to Kenya's top official, the principles of fairness, transparency, and merit, on which global finance should be based, are not respected when it comes to Africa.
"We must be bold and call this for what it is: a financial straitjacket imposed on Africa. A system that punishes our economies while rewarding others, even when the fundamentals are comparable, if not better. The foundations of global finance are supposed to be anchored on the principles of fairness, transparency, and merit. Yet, these principles are disregarded when it comes to Africa," he pointed out.
The president also stressed ACRA's ability to unlock $15.5 billion in funding and address 80% of Africa’s infrastructure needs.
The African Union plans to launch a new African credit rating agency in the second half of 2025, the AU African Peer Review Mechanism
said in a report titled "Africa Sovereign Credit Rating Outlook—2024 Year-End Review."
