President Tinubu has called for Africa-Owned Credit Rating Agency in Financial Times Op-Ed.
NewsOnline Nigeria reports that President Bola Tinubu has called for the creation of an Africa-owned credit rating agency to address what he described as the persistent mispricing of the continent’s economic risk by global financial markets.
Writing in an op-ed published on Monday in the Financial Times, Tinubu warned that African nations continue to face excessively high borrowing costs due to what he termed flawed external risk assessments.
The President criticised the so-called “Africa premium” — the gap between perceived and actual economic risk — arguing that it is unsustainable and detrimental to development across the continent.
According to Tinubu, Africa’s access to international capital markets is largely shaped by the decisions of three dominant global rating agencies: Fitch Ratings, Moody’s, and S&P Global Ratings.
He contended that while their ratings significantly influence investor behaviour and sovereign borrowing costs, they often fail to fully reflect local economic realities and reform efforts within African countries.
Tinubu’s proposal comes amid ongoing debates about debt sustainability, capital access, and financial sovereignty in emerging markets, with several African leaders advocating reforms to the global financial architecture.
Details shortly…
