President Bola Tinubu says establishing an Africa-led credit rating agency will reduce bias and provide more accurate assessments of African economies, promoting fairness in global finance.
Represented by Yusuf Tuggar, minister of foreign affairs, at the 38th ordinary session of the assembly of the African Union (AU) heads of state and government in Addis Ababa, Ethiopia, on Sunday, Tinubu said global agencies often rate African economies unfairly, but independent ratings would address the issue and improve credibility.
“An independent African-led rating agency will help provide fairer assessments of African economies and reduce the bias often observed in existing global rating agencies,” Tinubu said.
On December 19, 2024, the African Development Bank (AfDB) said African countries, including Nigeria, collaborated to establish a continental credit rating agency to counterbalance Western credit rating agencies’ bias against Africa.
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Also, Tinubu commended the AU, the AfDB, and the specialised technical committee (STC) on finance, for their leadership in developing an African framework for financing development among member states.
He said the Africa financing stability mechanism (AFSM) remains crucial as the continent faces rising borrowing costs, debt overhang, low domestic resource mobilisation, and limited access to long-term affordable financing.
“The establishment of the AFSM underscores the collective commitment of member states in addressing financial vulnerabilities and fostering economic resilience across the continent,” the president said.
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“This mechanism is envisioned to support member states in achieving their national development objectives, and it will also help create economic opportunities for citizens.”
Tinubu added that AFSM adoption by member countries would enhance financial stability, strengthen resilience against external shocks, and provide a coordinated approach to managing financial risks across the continent.
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