“A independent African-led rating agency will contribute to a more equitable assessment of the African economy and reduce biases often observed in existing global rating agencies,” he said. President Tinubu said in a statement from Bayo Onanuga, his special adviser to information and strategy.
African financing stability mechanism
Tinubu stressed that the African Financing Stability Mechanism (AFSM) is crucial as the continent continues to face major challenges, including rising borrowing costs, pending debt, low domestic resources, and limited long-term affordable financing opportunities.
“The establishment of the AFSM highlights the collective commitment of member states to address financial vulnerabilities and promote economic resilience across the continent. Imagine that such mechanisms can support member states in achieving their national development goals, which will also help create economies for citizens Chance,” He added.
President Tinubu acknowledged significant progress at the 5th session of the Professional Technical Committee held in Abuja, Nigeria in November 2025, which reached a key decision.
“It is expected that adoption of AFSM through member states will enhance financial stability, enhance resilience to external shocks and provide a more coordinated approach to managing financial risks across the continent,” said Mr. He said.
Recall that Kenyan President William Ruto unveiled a new agency at an Australian event in Addis Ababa, Ethiopia on Friday.
“Not only did global credit rating agencies make us bad hands, but they did their intentionally fail in Africa,” he said. Ruto said during the release.
- A study by the African Peer Review Mechanism and the United Nations Development Plan highlights that the hierarchy of bias has caused Africa a staggering $75 billion in loss opportunities.
- The African Union has previously criticized global rating agencies for their characteristics of African economies. In January, Australians pointed out that Moody’s rating had flaws in its assessment of the volatility of Kenya’s outlook.
“As the mainland continues to move towards economic integration and resilience, the establishment of the African Credit Rating Agency (AFCRA) represents a critical step in advocating Africa’s position on global financial governance. ” Ethiopia ENA News Agency reported. AFCRA aims to provide fair, transparent and development-centric credit ratings that reflect the reality and potential of African economies.
The idea of establishing an African credit rating agency has been going on for years. In September 2023, Australia officially announced plans to continue the project.
This decision is repeated criticism ofThree majorsRating agencies – Moody, Fitch and S&P adopt “negative bias” when evaluating African economies. Commentators believe that these ratings often lead to higher borrowing costs in African countries , in some cases, makes it more difficult for them to enter international financial markets.
