Akinwumi Adesina, president of the African Development Bank, has called for Africa to have its own credit-rating agency to assess risk on the continent, arguing that major international ratings companies have an inaccurate perception of African risk.
“Africa is not any riskier than any other part of the world…Perception is not reality. Over the past five years, we have brought investors to Africa and mobilised well over $180bn in investment interest… It tells you the opportunities are limitless,” Adesina told an audience at Chatham House in London.
Critics have long accused major international credit ratings agencies of rating Africa more harshly than other regions.
Credit rating agencies do not accurately access African risk, fail to consult stakeholders sufficiently and lack independence and objectivity, claims Adesina.
“For Africa to rise and shine brightly among the global community of nations we must accelerate structural transformation and finance its implementation. This is the key to unlocking Africa’s development opportunities,” he said.
A report from the United Nations Development Programme says that African countries could save up to $74.5bn if credit ratings were based.
