President William Ruto has called for the establishment of an African Credit Rating Agency (AfCRA) to address what he described as systemic bias in global financial assessments that have cost the continent billions in lost opportunities.

Speaking during a presidential breakfast on the sidelines of the 38th Ordinary Assembly of the African Union in Addis Ababa, Ethiopia, Ruto criticised international credit rating agencies for misrepresenting Africa’s economic reality.

“Global credit rating agencies have not only dealt us a bad hand, they have also deliberately failed Africa. They rely on flawed models, outdated assumptions, and systemic bias, painting an unfair picture of our economies and leading to distorted ratings, exaggerated risks, and unjustifiably high borrowing costs,” he stated.

The President cited findings from the Africa Peer Review Mechanism and the United Nations Development Programme, which estimate that biased credit ratings have resulted in $75 billion in lost opportunities for African nations.

Despite the continent’s wealth in natural resources, fertile land, and significant diaspora remittances, he noted that rating agencies have delivered 94 per cent of all downgrades in the last decade, while only recognising two African nations as investment grade.

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Ruto described this situation as a “financial straitjacket imposed on Africa”, arguing that African economies are penalised while others with similar or weaker fundamentals receive favourable ratings.

He emphasised that “Africa will no longer accept to be misjudged by scales that overlook our reality”, declaring that the push for an African-led rating agency is both necessary and inevitable.

The proposed AfCRA, according to Ruto, would not replace existing rating agencies but complement them by “filling data and analytical gaps” and ensuring that assessments are grounded in accurate and transparent methodologies.

He explained that research suggests that even a one-level improvement in Africa’s average credit rating could unlock $15.5 billion in additional funding, surpassing Official Development Assistance by 12 per cent and covering 80 per cent of Africa’s infrastructure needs.

Ruto pledged to build alliances across continents to ensure fair credit assessments, stating, “We will hold rating agencies to account and demand accurate standards. We will leverage the experience and expertise of Pan-African credit rating agencies, strengthening their capabilities and expanding their reach.”

He further commended the United Nations Development Programme and AfriCatalyst for supporting African nations in enhancing their creditworthiness, calling for partnerships based on tangible action.

Quoting African Development Bank President Akinwumi Adesina, Ruto concluded, “The perception of risk is not the reality of risk. Wrong scales will always give wrong weights.”

He affirmed that the African Credit Rating Agency will ensure Africa is measured accurately.