Some economists have commended the establishment of the Africa Credit Rating Agency (AfCRA), describing it as an opportunity to provide independent, Africa-focused assessments of the continent’s credit risks and economic realities.
They said the agency could help address biases in international credit ratings and improve investor confidence in African economies and businesses.
The economists spoke in separate interviews in Lagos on Wednesday.
Co-Founder of Lagos Business School, Patrick Utomi, lauded the establishment of the agency.
He said he had long advocated for Africa to establish its own credit rating agency to counter what he described as a false narrative about the continent.
“Despite the extraordinary work many African entrepreneurs and businesses are doing, more emphasis is placed on the negatives caused by a few members of the political class.
“This often paints the continent as a bad and risky place to do business, which is unfair and unjust,” Mr Utomi said.
He said the international financial system charged African countries a premium based on perceived risks.
“If the interest rate for Europe is seven per cent and the Middle East is 12 per cent, the rate for Africa is much higher.
“When you analyse the algorithms for risk and loan repayment, you will see that Africa is performing better than other continents,” Mr Utomi said.
He noted that since the 2008 global economic crisis, Western financial institutions had often cited Basel requirements to justify unfavourable financing terms for African countries.
Mr Utomi said the continent needed to change the narrative by highlighting its economic strengths and achievements to address prejudice against Africa.
Also, an economic researcher at BAA Consult, Benjamin Akinsoto, welcomed the establishment of the continent’s own credit rating agency.
“While we have relied on international credit rating agencies in the West for decades, it is imperative to establish indigenous rating institutions.
“Having our own agency is vital for Africa’s credibility, considering the investment prospects across the continent,” Mr Akinsoto said.
He emphasised that the agency must operate independently and uphold transparency to gain the confidence of the global financial community.
“This will help the rating agency earn trust and build its reputation among the global financial community,” Mr Akinsoto said.
Also, Founder of the Independent Shareholders Association of Nigeria, Sunny Nwosu, commended the establishment of the agency.
Mr Nwosu expressed optimism that the initiative would strengthen investor confidence, particularly in Nigeria’s capital market.
He said the country’s capital market was experiencing significant growth and creating more wealth for the people.
The African Union officially launched AfCRA in Port Louis, Mauritius, on October 7, 2026, following approval of the initiative in 2018.
The agency is expected to complement international credit rating agencies, including Fitch Ratings, Moody’s Ratings and S&P Global Ratings.
It will provide independent, Africa-focused creditworthiness assessments based on the continent’s economic realities, data and expertise.
(NAN)
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