Tinubu talks about new credit rating agency for Africa

President Bola Tinubu has welcomed the upcoming launch of the African Credit Rating Agency (AfCRA). He said Africa needs financial institutions that truly understand its economies and risks.

The African Union announced that the agency will officially launch on 7 October in Port Louis, Mauritius.

Tinubu said this development is another step towards creating African financial institutions that can give better assessments of the continent’s economies.

He shared this in a post on his official X account on Thursday. He reminded everyone that he called for an African credit rating agency in a February 2026 Financial Times article.

He also mentioned this at the Africa CEO Forum in Kigali, Rwanda, in May. There, he urged Africa to build financial institutions that understand its economic realities.

"Africa is not asking for favourable ratings. We are asking for fair ratings, grounded in our fundamentals and in the reforms our economies are actually carrying out," he said.

Why the agency is important

Credit ratings play a big role in how investors view the risk of lending to countries and companies. They can also impact borrowing costs and how much capital is available to governments and businesses.

African governments have often talked about an "Africa premium." This means African countries may pay more to borrow because of how investors see the continent’s risks.

Currently, three major global rating agencies, including Fitch, Moody’s, and S&P Global Ratings, assess African sovereign and corporate borrowers.

In a Financial Times article, President Tinubu argued that African economies are paying too much to borrow. He believes international ratings do not always reflect their economic realities.

He mentioned a 2023 United Nations Development Programme estimate. This estimate says that issues with credit ratings cost African countries about $75 billion each year. This is because of higher interest payments and missed lending opportunities.

He also pointed out that African economies that depend on commodities could face downgrades during global market downturns, even when their reserves, fiscal positions, and debt profiles are manageable.

The new agency is expected to offer an Africa-focused alternative. It will consider local economic conditions and reforms more closely.

The African Union has said that AfCRA will work alongside existing global rating agencies instead of replacing them.

Tinubu wants investor trust

In his Thursday statement, Tinubu said setting up an African rating agency should not be seen as a request for special treatment.

He emphasized that the agency must provide assessments based on economic fundamentals and the reforms African countries are making.

He pointed out Nigeria’s experience. He said improvements in economic data, fiscal transparency, and reforms have led to recent upgrades by international rating agencies.

Still, he admitted that the trustworthiness of AfCRA will depend on the quality and independence of its assessments.

"AfCRA must now earn the confidence of global capital. That confidence will rest on its independence and the rigour of its work," he noted.

The launch is set for 7 October in Mauritius. President Tinubu said he looks forward to this development.