President William Ruto has strongly criticized Global Credit Rating Agencies, stating that Africa will no longer accept their unfair assessments.

Speaking during a High-Level Presidential Breakfast Dialogue in Addis Ababa, on Friday, February 14, Ruto argued that these agencies rely on outdated assumptions and systemic bias, leading to distorted ratings, exaggerated risks, and unjustifiably high borrowing costs for African countries.

“The whole system is very biased. The result is that they paint a very unfair picture of our economies, and this has devastating effects because it leads to distorted ratings of the situation and exaggerated risks for our country and our continent,” he said.

He stressed that the inaccurate ratings have cost the continent Ksh10 trillion in missed investment opportunities.

“The prejudiced assessment comes at an enormous cost to Africa. It deters investment, distorts global trade, and derails progress towards sustainable development goals,” he said.

Ruto emphasized the need for an African-centric approach and announced the establishment of the African Credit Rating Agency (AfCRA).

This new agency aims to provide fair, transparent, and development-focused credit ratings that accurately reflect the realities and potential of African economies. He highlighted that improving Africa’s average credit rating could unlock significant funding and investment opportunities, which are crucial for the continent’s development.