Africa’s call for financial autonomy took a decisive step forward this week as leading policymakers, economists, and credit rating experts convened in Washington to push for the establishment of an African-led credit rating agency.
Held during the sidelines of the 2025 IMF–World Bank Spring Meetings, the high-level dialogue brought together key players from African institutions and global financial markets to address a pressing issue: the need for a credit rating system that better reflects Africa’s economic realities and potential.
Organized by the African Union’s African Peer Review Mechanism (APRM) alongside partners including the United Nations Development Programme (UNDP), the UN Economic Commission for Africa (UNECA), AfriCatalyst, and the African Center for Economic Transformation (ACET), the event signaled growing momentum behind Africa’s ambition to reshape its financial future.
Today, over 30 African nations rely on ratings from a handful of global agencies — Moody’s, S&P Global Ratings, and Fitch — whose assessments can dramatically influence borrowing costs, investor confidence, and access to capital. Yet concerns of bias, lack of transparency, and outdated methodologies have long plagued Africa’s interactions with these agencies, often leading to unfairly punitive assessments.
“Despite a combined GDP exceeding $3 trillion, only two African countries have secured investment-grade ratings,” noted Ambassador Claver Gatete, Executive Secretary of UNECA. “This imbalance not only misrepresents Africa’s economic strength but also hampers efforts to attract sustainable investment critical for development.”
The gathering emphasized that accurate, transparent credit ratings are not merely technical metrics — they are gateways to opportunity. They shape how African governments finance infrastructure, healthcare, education, and climate resilience.
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Dr. Raymond Gilpin, Chief Economist at UNDP Africa, called for a fundamental rethink of how Africa’s creditworthiness is evaluated. “We need development-centric rating systems that account for the continent’s resilience, reforms, and growth trajectories. Strengthening data systems and improving institutional capacity must be our foundation.”
The dialogue did not shy away from tough conversations. Participants from Moody’s and S&P Global acknowledged longstanding criticisms and expressed willingness to collaborate more closely with African governments, investors, and financial institutions to enhance transparency and address risk perception gaps.
At the heart of the discussion was the proposed African Credit Rating Agency (AfCRA) — an initiative positioned not as a replacement, but as a complement to existing global rating mechanisms.
Dr. Misheck Mutize, Lead Expert on Credit Ratings at APRM, made it clear: “AfCRA’s mission is not to deliver favourable ratings to African entities. It is about ensuring diversity in perspectives and a more contextual, independent view of African risk. This will empower governments, corporates, and investors alike.”
Creating AfCRA would mark a major leap toward building stronger domestic debt markets, reducing overreliance on external assessments, and fostering homegrown financial expertise.
Dr. Daouda Sembene, CEO of AfriCatalyst, stressed the urgency of action: “We cannot continue to allow inaccurate narratives to define Africa’s access to finance. Collaboration among African institutions and with global agencies is critical if we are to level the playing field.”
Looking ahead, participants highlighted three urgent priorities:
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Establishing more regular dialogue and transparency between African governments and international credit agencies.
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Strengthening Africa’s data and analytics capabilities to support stronger, evidence-based assessments.
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Building and operationalizing AfCRA as a credible, independent institution that bolsters Africa’s integration into global capital markets.
As South Africa chairs the G20 and the African Union cements its permanent seat at the table of global governance, the timing for an African-led solution has never been more opportune.
In a world where narratives shape markets, Africa is stepping forward to tell its own story — one of resilience, reform, and opportunity.
The conversations in Washington are just the beginning. Africa’s financial sovereignty is no longer just an aspiration — it is an emerging reality.
