Editor's Review

“Global credit rating agencies have not only dealt us a bad hand, they have also deliberately failed Africa."

President William Ruto has blasted global credit rating agencies for misinterpreting the economic situation in Africa.

Speaking on Friday, February 14 during the launch of the African Credit Rating Agency (AfCRA) in Addis Ababa, Ethiopia, Ruto accused the global credit rating agencies of deliberately failing the African continent.

He claimed that the agencies are biased and rely on outdated assumptions and flawed models leading to distorted ratings.

“Global credit rating agencies have not only dealt us a bad hand, they have also deliberately failed Africa. They rely on flawed models, outdated assumptions, and systemic bias, painting an unfair picture of our economies and leading to distorted ratings, exaggerated risks, and unjustifiably high borrowing costs,” said Ruto. 

The Head of State noted that the assessments by the global agencies not only cost the African continent but the whole world.

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Ruto mentioned that the ratings by the agencies deter investment, distort global trade, and derail progress toward sustainable development goals.

“By misjudging Africa, these agencies deny opportunity to investors and economies and deprive nations of prosperity,” Ruto stated.

File image of President William Ruto

The President pointed out that the inaccurate ratings have cost the continent Ksh9.6 trillion ($75 billion) in lost investment opportunities.

“The Africa Peer Review Mechanism and the United Nations Development Programme place the cost of biased credit ratings at a staggering $75 billion in lost opportunities.

“In a continent abundant with natural wealth, vast arable land, billions in diaspora remittances, and the world’s largest carbon sinks, credit rating agencies have delivered 94% of all downgrades in the past decade, while arbitrarily designating only two African nations as investment grade,” Ruto remarked.

Further President Ruto the continent will no longer accept to be misjudged by scales that overlook reality.

He observed that an African Credit Rating Agency must be globally credible, backed by credible data, and reflect Africa’s reality correctly.

Here is the video;