14 February 2025 – Addis Ababa, Ethiopia – The African Peer Review Mechanism (APRM) marked a significant milestone in Africa’s pursuit of financial independence with the announcement of the forthcoming launch of the African Credit Rating Agency (AfCRA). The announcement was made during a High-Level Presidential Breakfast hosted by H.E. President Abdelmadjid Tebboune of Algeria, Chair of the APRM Forum of Heads of State and Government, at the African Union Commission (AUC) in Addis Ababa, Ethiopia.
The event brought together a distinguished gathering of African heads of state, key private sector leaders, and representatives from financial institutions. It underscored the critical need for an African-led credit rating system that accurately reflects the continent’s economic realities. AfCRA is set to empower African countries to independently assess their creditworthiness, offering fairer and more accurate ratings, thereby reducing the reliance on external credit rating agencies. This, in turn, is expected to attract increased investment and foster sustainable economic growth across the continent.
President Tebboune’s Remarks
In his opening address, President Tebboune emphasized that the creation of AfCRA presents a critical opportunity for Africa to build its own credit rating agency industry, addressing a significant gap left by international rating agencies. He underscored that AfCRA will provide a more accurate assessment of Africa’s creditworthiness, conducted by institutions familiar with the continent's unique economic realities. President Tebboune highlighted that this initiative would introduce much-needed fairness into the evaluation process, correcting the biases inherent in external assessments, and positioning AfCRA as a key driver of Africa's financial independence.
Key Contributions from African Leaders
The event also saw influential remarks from several African leaders who voiced their strong support for AfCRA:
• H.E. William Samoei Ruto, President of Kenya, condemned the outdated and biased practices of international credit rating agencies, stressing that AfCRA will provide a more accurate and equitable evaluation of African nations’ creditworthiness.
• H.E. Taye Atske Selassie, President of Ethiopia, shared how global credit downgrades have negatively impacted Ethiopia’s economic reforms, expressing confidence that AfCRA will offer an alternative that better reflects Africa’s true potential.
• H.E. Hakainde Hichilema, President of Zambia, echoed the call for global financial reforms, stating that AfCRA will help reduce Africa’s high borrowing costs, enabling the financing of critical infrastructure projects.
Remarks by Key Stakeholders
The breakfast featured important contributions from African leaders and key stakeholders who emphasized AfCRA’s transformative potential:
• Dr. Monique Nsanzabaganwa, the outgoing Deputy Chairperson of the African Union, stressed that AfCRA aligns with Africa’s broader goal of economic integration, particularly through the African Continental Free Trade Area (AfCFTA). She emphasized that AfCRA would provide reliable financial assessments, contributing to long-term economic sustainability and attracting much-needed investment.
• Amb. Albert Muchanga, Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals of the African Union Commission, played a central role in moderating the event and emphasized that the success of AfCRA relies on the united political commitment of Africa’s leaders. He reiterated that AfCRA would be a transparent and credible platform for assessing Africa’s economies and noted that the agency must be backed by the continent's political leadership to gain global recognition.
• Mr. Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa (UNECA), strongly emphasized the need for AfCRA to challenge the outdated financial structures that have long influenced Africa’s economic development. He noted that Africa is now ready to take charge of its financial story, pointing out that external entities have for too long evaluated African economies without a true understanding of the continent’s realities. Mr. Gatete stressed that AfCRA would introduce an African perspective into global financial systems, promoting greater financial autonomy for the continent.
Private Sector and Financial Institutions’ Involvement
The breakfast also featured prominent voices from the private sector and financial institutions, including Prof. Kevin Urama, Vice President of the African Development Bank (AfDB), Dr. George Elombi, Executive Vice President of Afreximbank and Mr. Rony Lam, Chief Executive Officer, Mauritius Commercial Bank (MCB) Capital Markets.
They discussed the operationalization of AfCRA, emphasizing the importance of transparency, local expertise, and collaboration between African governments, financial institutions, and international partners. They all agreed that AfCRA’s success is vital for improving the continent’s access to capital and driving sustainable development.
A New Era for Africa’s Economic Future
The forthcoming launch of AfCRA in June 2025 is a defining moment in Africa’s journey toward financial independence. It promises to reshape the continent’s financial landscape by offering a more accurate and reliable credit rating system. The establishment of AfCRA will provide African nations with the necessary tools to secure financing at lower costs and attract investments that are better tailored to Africa’s economic realities.
In closing, President Tebboune expressed his appreciation for the efforts of the APRM Secretariat, financial experts, and other stakeholders who have been instrumental in establishing the foundation for the initiative. He called on all Heads of State and Government, as well as private sector leaders and development institutions, to offer their full support to the creation of the African Credit Rating Agency. He emphasized that with collective effort, AfCRA can become a symbol of fairness, accuracy, and integrity within global financial systems.
The success of AfCRA will depend on the continued collaboration between African governments, financial institutions, and international partners. Its establishment marks a decisive moment in the continent’s efforts to achieve greater financial autonomy, paving the way for a more equitable and self-sufficient Africa on the global stage.
About the APRM: The African Peer Review Mechanism (APRM) is an autonomous entity of the African Union, established in 2003. It functions as a voluntary self-monitoring tool for African Union Member States, aimed at promoting and strengthening governance in four thematic areas: Democracy and Political Governance, Economic Governance, Corporate Governance, and Socio-Economic Development
For media inquiries or further information, please contact the APRM Continental Secretariat at: info@aprm-au.org
