Dr. Mohammed Amin Adam
Dr Mohammed Amin Adamu has supported the call for the establishment of an African sovereign credit rating agency.
This, he argued, will ensure a balanced, accurate and comprehensive assessment of credit risks, facilitate competitive access to capital and promote the development of domestic financial markets across the continent.
In a media interview discussing Ghana’s economy and other African economic issues, the Finance Minister lamented the unfair assessment of developing countries by international rating agencies.
“Having our own rating agency would allow us to get a second opinion from experts and, if challenged, we could reflect the facts. I think the African Development Bank should take the lead by organising the stakeholders to decide on the modalities,” he said.
Dr. Adamu further stressed that such stakeholder meetings are crucial in building credibility that will reflect in the ratings given to African countries.
According to a report by the United Nations Economic Commission for Africa, major rating agencies issued 13 negative decisions, including downgrades and negative outlook assessments, on 11 African countries in the first half of 2023. “These developments have upset the optimism of international financial market investors that African countries are recovering from the devastating COVID-19 economic shock,” the report said.
Earlier, President Akufo-Addo, speaking at the 35th African Union Summit in Addis Ababa, Ethiopia, said there was a need to be wary of the “continued clampdown by rating agencies that is affecting the cost and access to capital markets for African countries.”
Speaking at the 2024 African Development Bank Annual Meeting in Nairobi, Kenya, Governor William Ruto called on African Development Bank President Akinwumi Adesina to establish an African Credit Agency and undertake a comprehensive review of Gross Domestic Product (GDP) to reflect the true economic performance of African countries.
Revealing how perceptions affected Kenya’s credit rating for the Eurobond issuance, President Ruto said, “Kenya faced rising interest rates due to geopolitical conflicts far from our borders such as the Niger conflict. Niger is 4,585km away from Kenya but our destinies are tied together by perceptions in places like Washington.”
The three major international rating agencies – Fitch Ratings, Moody’s Services and S&P – have come under intense scrutiny as many countries question their own credit ratings.
Dr Mohammed Amin Adamu has supported the call for the establishment of an African sovereign credit rating agency.
This, he argued, will ensure a balanced, accurate and comprehensive assessment of credit risks, facilitate competitive access to capital and promote the development of domestic financial markets across the continent.
In a media interview discussing Ghana’s economy and other African economic issues, the Finance Minister lamented the unfair assessment of developing countries by international rating agencies.
“Having our own rating agency would allow us to get a second opinion from experts and, if challenged, we could reflect the facts. I think the African Development Bank should take the lead by organising the stakeholders to decide on the modalities,” he said.
Dr. Adamu further stressed that such stakeholder meetings are crucial in building credibility that will reflect in the ratings given to African countries.
According to a report by the United Nations Economic Commission for Africa, major rating agencies issued 13 negative decisions, including downgrades and negative outlook assessments, on 11 African countries in the first half of 2023. “These developments have upset the optimism of international financial market investors that African countries are recovering from the devastating COVID-19 economic shock,” the report said.
Earlier, President Akufo-Addo, speaking at the 35th African Union Summit in Addis Ababa, Ethiopia, said there was a need to be wary of the “continued clampdown by rating agencies that is affecting the cost and access to capital markets for African countries.”
Speaking at the 2024 African Development Bank Annual Meeting in Nairobi, Kenya, Governor William Ruto called on African Development Bank President Akinwumi Adesina to establish an African Credit Agency and undertake a comprehensive review of Gross Domestic Product (GDP) to reflect the true economic performance of African countries.
Revealing how perceptions affected Kenya’s credit rating for the Eurobond issuance, President Ruto said, “Kenya faced rising interest rates due to geopolitical conflicts far from our borders such as the Niger conflict. Niger is 4,585km away from Kenya but our destinies are tied together by perceptions in places like Washington.”
The three major international rating agencies – Fitch Ratings, Moody’s Services and S&P – have come under intense scrutiny as many countries question their own credit ratings.
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