The announcement of the creation of an African credit rating agency marks a decisive turning point for the continent. This initiative, welcomed by experts, aims to establish an independent system for assessing African economies, allowing them to break free from traditional Western rating agencies, which are often criticized for their \u00ab\u00a0subjectivity and bias.\u00a0\u00bb <\/p>\n
During the 34th Summit of Heads of State and Government of the African Peer Review Mechanism (APRM) in Addis Ababa, President Abdelmadjid Tebboune, in his capacity as APRM Chair, emphasized that this continental agency \u00ab\u00a0represents a new milestone for Africa’s economic development and will have an entirely positive impact on its countries.\u00a0\u00bb He particularly stressed the need to \u00ab\u00a0move away from unscientific, illogical, and anti-economic assessments,\u00a0\u00bb adding that \u00ab\u00a0we must conduct our own evaluation before being evaluated by others.\u00a0\u00bb <\/p>\n
Financial expert Chaabane Assad highlights that this initiative is of \u00ab\u00a0crucial importance\u00a0\u00bb both economically and geopolitically. He underscores the issue of unfavorable ratings assigned by the three major global agencies (Fitch, Standard & Poor\u2019s, and Moody\u2019s) to African countries, leading to prohibitively high borrowing rates on international markets. These conditions heavily burden African public finances, with debt servicing amounting to billions of dollars. <\/p>\n
Nazim Sini, a professor of economic sciences, sees this agency as a means to \u00ab\u00a0break the monopoly of the three major Western agencies,\u00a0\u00bb whose country risk assessments are, in his words, \u00ab\u00a0fragmented, biased, and unfair.\u00a0\u00bb The uniqueness of this new approach lies in its ability to incorporate African-specific factors and recognize states’ efforts in economic reforms, technological infrastructure development, and digitalization. <\/p>\n
For banking expert Idir Saci, this initiative will strengthen \u00ab\u00a0the continent’s autonomy and sovereignty.\u00a0\u00bb He emphasizes the importance of \u00ab\u00a0credibility and transparency\u00a0\u00bb in the agency’s operations, advocating for a centralized structure to ensure \u00ab\u00a0consistency and rigor\u00a0\u00bb in its work. <\/p>\n
Experts agree on the potential of this agency to \u00ab\u00a0energize the common African financial market.\u00a0\u00bb It is expected to help retain capital within the continent, thereby fostering shared growth and reducing reliance on Western financing. Establishing branches in multiple countries is recommended to minimize dependence on foreign agencies and create a climate of trust in the African financial market. <\/p>\n
This new rating agency is part of a broader effort toward continental economic integration. It is expected to enable African countries to negotiate better loan terms and exercise greater control over their debt. Ultimately, the goal is to establish the foundations for harmonizing economic and institutional assessments across the continent, with plans to create local offices for effective monitoring of national economies and their specificities. <\/p>\n
The creation of this agency thus represents a crucial step toward greater financial autonomy for Africa, providing the continent\u2019s states with the means to regain control over their credit ratings and, by extension, their economic future.<\/p>\n","protected":false},"excerpt":{"rendered":"