President Bola Tinubu says he strongly supports an Africa-led credit rating agency (ACRA), saying it will provide fairer, more transparent credit assessments for African economies.
The President said this at the 38th Ordinary Session of the Assembly of the African Union (AU) Heads of State and Government in Addis Ababa, Ethiopia, on Sunday.
“An independent Africa-led rating agency will help provide fairer assessments of African economies and reduce the bias often observed in existing global rating agencies,” the President said in a statement by Mr Bayo Onanuga, his spokesman.
President Tinubu commended the African Union (AU), the African Development Bank (AfDB), and the Specialised Technical Committee (STC) on Finance for their visionary leadership in advancing an African framework for financing development among member states.
He affirmed that the Africa Financing Stability Mechanism (AFSM) is crucial as the continent continues to face significant challenges.
He identified the challenges as rising borrowing costs, debt overhang, low domestic resource mobilisation, and limited access to long-term affordable financing.
“The establishment of the AFSM underscores the collective commitment of member states to addressing financial vulnerabilities and fostering economic resilience across the continent.
“This mechanism is envisioned to support member states in achieving their national development objectives, and it will also help create economic opportunities for citizens,” he said.
The Nigerian leader acknowledged the significant progress made at the 5th Extraordinary Session of the Specialised Technical Committee on Finance, held in November 2024 in Abuja, Nigeria, which reached key decisions.
“The adoption of the AFSM by member states is expected to enhance financial stability, strengthen resilience against external shocks, and provide a more coordinated approach to managing financial risks across the continent,” he said. (NAN)
