President William Ruto has reiterated his support for the African Credit Rating Agency (AfCRA) to correct what he described as structural inequities in the global financial system that unfairly penalise African economies.
- •Speaking during the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Ruto said current international credit rating frameworks overlook Africa’s unique economic realities, resulting in higher borrowing costs and limited access to affordable financing.
- •Ruto argued that a continental rating mechanism will complement global reforms and give African states a fairer assessment, enabling them to attract investment on better terms.
- •The African Credit Rating Agency (AfCRA) is a new, privately-owned initiative designed to provide independent and credible credit ratings specifically for African entities.
“The current global credit rating system often overlooks Africa’s realities, unfairly penalising our countries during periods of global distress. This must change,” the President said, urging delegates to support progressive reforms that would unlock predictable and sustainable development financing.
In January, the African Union faulted Moody’s revision of Kenya’s credit rating outlook from negative to positive, arguing that the change is an admission that the July 2024 downgrade was premature and incorrect. Negative ratings raise the cost of borrowing, as downgraded economies find it harder to access financing from international markets.
At the time, President Ruto called the current system “A financial straitjacket imposed on Africa.”
In a statement the African Union says “AfCRA’s objective is not to compete with or replace the three international credit rating agencies, but rather to complement them by providing an alternative perspective. It will focus on filling gaps in data and analysis, addressing regional nuances, and promoting African financial integration.”
The President also emphasised the need for deeper intra-African trade, noting that only 18 per cent of the continent’s exports are traded within Africa compared to more than 60 per cent in Europe and Asia. He said the African Continental Free Trade Area (AfCFTA) could raise intra-African trade by 50% by 2035, creating wealth, jobs, and opportunities for small and medium enterprises.
On agriculture, Ruto reiterated that the sector remains Africa’s “greatest untapped engine of prosperity,” employing over 60 per cent of the population yet falling short of its potential. He called for greater investment in technology, rural infrastructure, and financing to turn agriculture into a driver of industrialisation and job creation.
He further highlighted the role of the private sector in Africa’s transformation, stressing that effective public-private partnerships would be key to bridging financing gaps and delivering sustainable growth.