Africa is Not Asking for Favours - Ruto on Trade Rules and Credit Rating Agencies

President William Ruto has called for reforms to global trade rules and credit rating agencies.

Speaking in Spain during the 4th Financing for Development (FfD4) summit on Monday, June 30, Ruto called for all-inclusive trade rules that reward green production and accelerate decarbonization.

He explained that such a move would be crucial for African countries such as Kenya that are among the leaders in green energy production.

He asserted that Africa only wanted reforms that would guarantee equality, insisting that they were not favours.

"Africa’s role is critical to the global climate agenda. But we cannot deliver if our goods, services, and carbon credits are excluded from global markets or if entire value chains are blocked," he stated.

"We must design trade rules and pricing systems that reward green production and accelerate decarbonization. Africa must be part of that solution, transforming green premiums into green discounts."

On global Credit Rating Agencies, the President called for agencies to have a better understanding of the economies of Africa, including their strengths and weaknesses.

The Credit Rating Agencies rate various countries based on their ability to repay their loans to other countries and financial institutions such as the International Monetary Fund (IMF) and the World Bank.

"Let us be clear: without affordable capital and open markets, progress will stall. High debt premiums cannot be fixed by technical adjustments alone," read the statement in part.

"Credit Rating Agencies also need to change their understanding of African economies. The African Credit Rating Agency is a crucial step in gaining a better understanding of Africa."

Ruto has been pushing for reforms in the leading lenders, as African countries have raised concerns over expensive loans amid calls for equitable green financing.