AFRICA: The African Union plans to launch a new African credit rating agency in 2024 to address concerns that ratings given to African countries are seemingly unfair.
A lead expert for country support on rating agencies with the AU said the agency would craft its own assessment of the risks in lending to African countries based on the continent. Moreover, the agency would add context to the information investors consider when deciding whether to buy African bonds or lend privately to countries. AU finance ministers passed a resolution to endorse the plan for the new agency and the full AU executive council is expected to adopt the same resolution in February.
The lead expert stressed that the launch of the African credit rating agency was not to replace the big three (Moody’s, S&P and Fitch Ratings) as they are needed to support access to international capital. The planned new AU credit rating agency would be self-funded and private-sector-driven, with AU oversight. (ETM)
