Addis Ababa: 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.
According to News Agency of Nigeria, President Tinubu emphasized the importance of an independent Africa-led rating agency in providing unbiased assessments of African economies, which he believes will mitigate the bias often seen in existing global rating agencies. He commended the African Union (AU), the African Development Bank (AfDB), and the Specialised Technical Committee (STC) on Finance for their leadership in advancing an African framework for financing development among member states.
President Tinubu also highlighted the Africa Financing Stability Mechanism (AFSM) as crucial for the continent, which faces challenges such as rising borrowing costs, debt overhang, low domestic resource mobilisation, and limited access to long-term affordable financing. He stressed that the establishment of the AFSM demonstrates the collective commitment of member states to address financial vulnerabilities and bolster economic resilience across Africa.
The Nigerian leader acknowledged the progress made at the 5th Extraordinary Session of the Specialised Technical Committee on Finance, held in November 2024 in Abuja, Nigeria, where key decisions were reached. He noted that the adoption of the AFSM by member states is anticipated to enhance financial stability, strengthen resilience against external shocks, and provide a more coordinated approach to managing financial risks across the continent.