Ruto faults international credit standing companies as Africa launches its personal

Ruto faults international credit standing companies as Africa launches its personal

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President William Ruto has faulted international credit standing companies over what he phrases as being unfair to African nations of their scores.

Speaking on Friday, February 14, 2025, through the launch of the African Credit Rating Agency (AfCRA) through the presidential breakfast on the sidelines of the thirty eighth Ordinary Assembly of the African Union, Ruto stated international credit standing companies have been intentionally failing Africa.

“The time has come to rewrite our history, reclaim our narrative, and charge the African Renaissance forward. Esteemed colleagues, our urgent calling is to fulfil our duty to Africa’s people and ensure that our continent takes its rightful place in shaping global progress in its full capacity and potential,” Ruto said.

According to Ruto, the worldwide companies have been utilizing flawed fashions, outdated assumptions, and systemic bias, portray an unfair image of African economies and resulting in distorted scores, exaggerated dangers, and unjustifiably excessive borrowing prices.

“That is why we are gathered here today. Africa’s economic potential is hamstrung by a financial system that misrepresents, distorts, and understates our reality. Global credit rating agencies have not only dealt us a bad hand, they have also deliberately failed Africa,” he added.

“These prejudiced assessments come at an enormous cost not just to Africa but to the world. They deter investment, distort global trade, and derail progress towards the Sustainable Development Goals. By misjudging Africa, these agencies deny opportunity to investors and economies and deprive nations of prosperity.”

Ruto laments that regardless of Africa’s pure wealth, huge arable land, billions in diaspora remittances, and the world’s largest carbon sinks, credit standing companies have delivered 94 per cent of all downgrades prior to now decade, whereas arbitrarily designating solely two African nations as funding grade.

Ruto has termed the state of affairs as a monetary straitjacket imposed on Africa, a system that punishes African economies whereas rewarding others, even when the basics are comparable.

“The foundations of global finance are supposed to be anchored on the principles of fairness, transparency, and merit. Yet, these principles are disregarded when it comes to Africa,” he said.

“Africa will no longer accept to be misjudged by scales that overlook our reality. The winds of change are blowing, and our march forward is as unstoppable as it is relentless. An African Credit Rating Agency is not just an alternative, it is an imperative. This agency must be globally credible and backed by rigorous, credible data and driven by high reporting standards from our own governments. But more importantly, it must reflect Africa’s reality correctly.”

Ruto says African nations should work to strengthen the capabilities of Pan-African credit standing companies and increasing their attain.

“The potential impact is profound. Research shows that a one- level improvement in Africa’s average credit rating would unlock $15.5 billion in additional funding. This alone would outstrip Official Development Assistance by 12% and meet 80% of Africa’s infrastructure needs. The opportunity is within our grasp, and we must seize it,” Ruto stated.