Kenyan President William Ruto has emphasized the urgent need for an African Credit Rating Agency to address systemic bias and unfair assessments by global rating firms. Speaking at a sideline event of the ongoing African Union (AU) Summit in Addis Ababa on Friday morning, President Ruto criticized existing global agencies for their flawed models and outdated assumptions that disadvantage African economies.
“Global credit rating agencies have not only dealt us a bad hand, but they have also deliberately failed Africa,” Ruto stated. “They rely on flawed models, outdated assumptions, and systemic bias, painting an unfair picture of our economies and leading to distorted ratings, exaggerated risks, and unjustifiably high borrowing costs.”
The AU Summit, themed “Educating an Africa Fit for the 21st Century”, has brought together heads of state, policymakers, and economic experts to discuss pressing issues, including debt sustainability, regional integration, and the African Continental Free Trade Area (AfCFTA). Leaders are also focusing on strengthening intra-African trade, advancing digital transformation, and addressing security challenges across the continent.
Beyond economic discussions, a key highlight of the summit is the election of new members of the African Union Commission (AUC), the AU’s executive body. The elections will determine leadership positions, including the Chairperson, Deputy Chairperson, and Commissioners overseeing critical portfolios such as political affairs, peace and security, infrastructure, and economic development. With several candidates vying for top positions, the outcome is expected to shape the AU’s priorities in the coming years.
Ruto’s call for an independent African rating agency aligns with broader discussions on financial sovereignty and economic resilience. The proposal has gained traction among AU member states, who argue that a homegrown institution would provide a more accurate and balanced assessment of the continent’s economic strength and potential.
As the summit progresses, African leaders are expected to push for structural reforms that enhance economic self-reliance, with the proposed credit rating agency emerging as a key agenda item in reshaping Africa’s financial landscape. The results of the AU Commission elections will also play a crucial role in setting the strategic direction of the organization in the years ahead.
