New credit rating agency for Africa to be launched in 2025
Date
7/22/2024 5:48:49 AM
(MENAFN) Albert Muchanga, the African Union Commissioner for Development, Trade, Tourism, Industry, and Minerals, revealed that a new credit rating agency specifically designed to address the needs of sovereign borrowers in Africa is expected to be operational by next year. This agency aims to provide a more tailored approach to credit ratings for African nations, which have traditionally faced challenges related to high borrowing costs and inadequate representation in global rating systems. Muchanga explained that this initiative is driven by a desire for a fairer evaluation and to improve the financial conditions under which African countries operate.
The upcoming agency will be an independent entity, not owned by the African Union or any other regional bloc, ensuring its impartiality and professional credibility. Muchanga noted that the establishment of this institution is crucial because it will contribute to the de-risking of Africa's capital markets. By offering more accurate and region-specific ratings, the agency is expected to help African countries secure more favorable borrowing terms, both within the continent and on the global stage.
This new credit rating agency represents a significant advancement in Africa's financial infrastructure, reflecting a broader push towards greater economic autonomy and self-reliance. The goal is to enhance Africa's ability to borrow competitively and effectively, thereby strengthening the continent's economic position and supporting sustainable development efforts.
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