“An independent African-led rating agency will help provide fairer assessments of African economies and reduce the bias often observed in existing global rating agencies,” President Tinubu stated in a statement by Bayo Onanuga, his special adviser on information and strategy.
Africa Financing Stability Mechanism
Tinubu emphasized that the Africa Financing Stability Mechanism (AFSM) is crucial as the continent continues to face significant challenges, including rising borrowing costs, debt overhang, low domestic resource mobilization, and limited access to long-term affordable financing.
“The establishment of the AFSM underscores the collective commitment of member states in addressing financial vulnerabilities and fostering economic resilience across the continent. This mechanism is envisioned to support member states in achieving their national development objectives, and it will also help create economic opportunities for citizens,” he added.
President Tinubu acknowledged the significant progress made at the 5th Extraordinary Session of the Specialized Technical Committee on Finance, held in November 2025 in Abuja, Nigeria, which reached key decisions.
“The adoption of the AFSM by member states is expected to enhance financial stability, strengthen resilience against external shocks, and provide a more coordinated approach to managing financial risks across the continent,” he said.
Recall that Kenya’s President, William Ruto, unveiled the new agency at an AU event held in Addis Ababa, Ethiopia, on Friday.
“Global credit rating agencies have not only dealt us a bad hand, they have also deliberately failed Africa,” Ruto stated during the launch.
- A study by the Africa Peer Review Mechanism and the United Nations Development Programme highlights that biased grading has cost Africa a staggering $75 billion in lost opportunities.
- The African Union has previously criticized global rating agencies’ characterization of African economies. In January, the AU pointed out that Moody’s Ratings’ fluctuating assessment of Kenya’s outlook was flawed.
“As the continent continues its march towards economic integration and resilience, the establishment of the African Credit Rating Agency (AfCRA) represents a pivotal step in asserting Africa’s position on global financial governance,” Ethiopia’s ENA news agency reported. AfCRA aims to provide fair, transparent, and development-focused credit ratings that reflect the realities and potential of African economies.
The idea of creating an African credit rating agency has been in the pipeline for years. In September 2023, the AU officially announced its plans to move forward with the project.
This decision comes after repeated criticism of the “Big Three” rating agencies—Moody’s, Fitch, and S&P—accused of applying a “negative bias” when assessing African economies. Critics argue that these ratings often lead to higher borrowing costs for African countries and, in some cases, make it harder for them to access international financial markets.
