In a bold move to reshape Africa’s financial landscape, Nigeria and several other African nations are collaborating to establish a continental credit rating agency. This initiative aims to counter perceived biases from Western credit rating agencies and provide a more accurate representation of Africa’s economic realities.

The announcement was made during the launch of the Debt Management Forum for Africa and the inaugural policy dialogue titled “Making Debt Work for Africa: Policies, Practices, and Options,” organized by the African Development Bank (AfDB) in Abuja.

Prof. Kevin Urama, Vice President and Chief Economist at the AfDB, highlighted that the proposed African credit rating agency would address information asymmetries and biases that have historically affected the continent’s credit ratings. He emphasized that the lack of reliable data and the reliance on historical perceptions have contributed to unfavorable ratings for African countries.

“The credit rating agency will encourage Africans to introspect and understand that it’s not just about blaming the big three. If they provide certain ratings, we need to assess our methodologies and data sources,” Urama stated. He added that this initiative would enhance engagement with existing rating agencies and improve their understanding of Africa’s unique economic contexts.

Supporting this perspective, the Director-General of Nigeria’s Debt Management Office, Ms. Patience Oniha, noted that Western credit rating agencies often exhibit biases against Africa.She pointed out that the limited timeframes given to countries to respond to queries further exacerbate these challenges.

This development comes amid growing concerns about Africa’s debt sustainability and the need for fair assessments that reflect the continent’s true economic potential. By establishing a continental credit rating agency, African nations aim to assert greater control over their financial narratives and foster an environment conducive to sustainable economic growth.