AfDB Launches Initiative to Boost African Credit Ratings

The African Development Bank (AfDB), under the leadership of President Sidi Ould Tah, is set to launch an initiative aimed at assisting African countries in enhancing their sovereign credit ratings. This initiative focuses on improving the quality of economic data and transparency, which are critical in addressing the information gaps that contribute to perceptions of higher risk and increased borrowing costs.

Speaking at the S&P emerging markets conference in London, Tah emphasized that only three of Africa’s 54 countries currently hold investment-grade ratings. The initiative will be implemented through the African Legal Support Facility and aims to prepare governments for credit assessments by providing better data to ratings agencies.

This move comes amid ongoing concerns from African leaders regarding the high costs of accessing international capital. Additionally, Nigerian President Bola Tinubu has advocated for the establishment of an Africa-owned credit rating agency to better reflect the economic conditions of African nations.

The AfDB is also working to strengthen local financing and capital markets across the continent.