Manny Ita –
President Bola Ahmed Tinubu has called for the establishment of an Africa-owned credit rating agency to address what he described as the persistent mispricing of the continent’s risk by global financial markets. Writing in an opinion article published by the Financial Times, the Nigerian leader argued that existing international rating systems often undervalue African economies, resulting in higher borrowing costs and constrained access to capital.
Tinubu stated that the continent requires an independent institution capable of providing assessments grounded in local realities rather than external perceptions. “Africa cannot continue to outsource the evaluation of its economic prospects to institutions that may not fully appreciate our strengths, reforms, and long-term potential,” he wrote. He emphasized that inaccurate risk assessments discourage investment and undermine development efforts across the region.
The president noted that despite improvements in macroeconomic management and growth prospects in several African countries, sovereign ratings frequently remain below what underlying fundamentals would suggest. He argued that this gap translates into billions of dollars in additional financing costs for governments and businesses. “The result is a cycle in which perceived risk inflates actual risk, making development more expensive than it should be,” Tinubu said.
According to the article, an Africa-based agency would complement—not necessarily replace—existing global rating firms by offering alternative analyses and promoting competition in the market for credit assessments. Tinubu also highlighted the need for strong governance, transparency, and technical credibility to ensure international acceptance of any new institution.
Economic analysts say the proposal reflects longstanding concerns among African policymakers that global financial institutions sometimes apply uniform models that fail to capture local conditions. Supporters argue that a continental agency could improve investor confidence by providing more nuanced data, while critics caution that credibility would depend on independence from political influence.
Tinubu concluded by urging African governments, development banks, and private sector stakeholders to collaborate on the initiative, stressing that fair access to capital is essential for infrastructure development, industrialization, and poverty reduction. “Africa’s future should not be constrained by outdated narratives or incomplete assessments,” he wrote, calling the creation of such an agency a strategic step toward financial sovereignty.
