Nigerian President Bola Ahmed Tinubu has expressed strong support for the newly launched African Credit Rating Agency (AfCRA), emphasizing that it will provide more equitable and transparent credit assessments for African economies.
The African Union (AU) officially launched AfCRA on Friday to address perceived biases in global credit rating agencies.
President Tinubu commended the AU, the African Development Bank (AfDB), and the Specialized Technical Committee (STC) on Finance for their visionary leadership in establishing an African-led framework for financing development among member states.
“An independent African-led rating agency will help provide fairer assessments of African economies and reduce the bias often observed in existing global rating agencies,” President Tinubu stated in a statement issued by his Special Adviser on Information and Strategy, Bayo Onanuga.
Africa Financing Stability Mechanism
The Nigerian leader also underscored the importance of the Africa Financing Stability Mechanism (AFSM) in addressing key economic challenges, including rising borrowing costs, debt burdens, low domestic resource mobilization, and limited access to long-term affordable financing.
“The establishment of the AFSM underscores the collective commitment of member states in 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 added.
President Tinubu acknowledged the significant progress made at the 5th Extraordinary Session of the Specialized Technical Committee on Finance, held in November 2025 in Abuja, Nigeria, where key decisions on the initiative were reached.
“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.
Addressing Global Rating Bias
Kenyan President William Ruto officially unveiled the new agency during an AU event in Addis Ababa, Ethiopia, on Friday.
“Global credit rating agencies have not only dealt us a bad hand, they have also deliberately failed Africa,” Ruto stated at the launch.
A study by the Africa Peer Review Mechanism and the United Nations Development Programme (UNDP) estimates that biased credit ratings have cost Africa approximately $75 billion in lost opportunities.
The AU has previously criticized the methodologies of global rating agencies when assessing African economies. In January, the AU argued that Moody’s Ratings had issued an inconsistent and flawed assessment of Kenya’s economic outlook.
Ethiopia’s ENA news agency emphasized the significance of the new initiative, reporting:
“As the continent continues its march towards economic integration and resilience, the establishment of the African Credit Rating Agency (AfCRA) represents a pivotal step in asserting Africa’s position on global financial governance.”
AfCRA aims to provide fair, transparent, and development-focused credit ratings that accurately reflect the realities and potential of African economies.
The creation of an African credit rating agency has been in discussion for several years. In September 2023, the AU formally announced its plans to proceed with the initiative.
This move follows persistent criticism of the dominant global credit rating agencies—Moody’s, Fitch, and S&P—which have been accused of applying a “negative bias” in their assessments of African economies. Critics argue that these unfavorable ratings contribute to higher borrowing costs and limit African nations’ access to international financial markets.
