Former President of Ghana, Nana Addo Dankwa Akufo-Addo, has reiterated the urgent need for Africa to establish its own credit rating agency to counter what he describes as entrenched bias within the current global financial system. Throughout his presidency and even in his post-presidency engagements, Akufo-Addo has been one of the continent’s most outspoken advocates for financial sovereignty and institutional reform.

According to Akufo-Addo, the dominant global credit rating agencies Moody’s, Fitch, and Standard & Poor’s have historically applied a skewed lens when evaluating African economies. He contends that these agencies regularly impose an unjustified “Africa risk premium,” inflating borrowing costs and distorting investment risk perceptions. This systemic bias, he argues, deprives African nations of fair access to global capital and undermines their development efforts.

Drawing from Ghana’s own experience, the former president criticized the repeated downgrades issued during times of economic stress, particularly during the COVID-19 pandemic and subsequent fiscal challenges. These downgrades, he claims, were not based on objective economic fundamentals but on pessimistic projections and outdated models.

“They were reckless and unhelpful,” Akufo-Addo said in one of his final addresses as head of state. “Rather than aiding recovery, the agencies’ actions deepened our crisis.”

His proposal centers on the creation of a homegrown African credit rating agency, one that would fairly evaluate sovereign creditworthiness using criteria suited to African economies. Such an agency, Akufo-Addo argues, would take into account the nuances of African fiscal policies, political reforms, and growth trajectories, rather than relying on blanket global benchmarks.

The idea of an African-owned rating agency has gained support across the continent. Finance ministers, economists, and regional institutions like the African Union and African Development Bank have echoed similar calls, citing research that shows African countries are penalized in global debt markets to the tune of billions each year. A UNDP study estimated that biased ratings cost African countries up to $75 billion annually in higher interest payments.

In addition to advocating for a fairer rating system, Akufo-Addo has long championed broader reforms to global finance. During his presidency, he pushed for more equitable access to IMF Special Drawing Rights (SDRs) and greater representation of African nations in global financial decision-making. He also backed the establishment of pan-African institutions such as the African Central Bank and African Monetary Fund to enhance economic autonomy.

Critics of the proposal for an African credit rating agency argue that it must be built with strong governance, rigorous methodologies, and complete independence to earn credibility in global markets. Akufo-Addo acknowledged these concerns but maintained that Africa is capable of creating institutions that meet international standards, provided there is the political will.

“It is time for Africa to take control of its financial narrative,” he said in a recent address. “We must stop allowing others to define our risk and start building institutions that reflect our realities and aspirations.”

Although he has left office, Akufo-Addo’s influence continues to shape conversations around financial justice and economic restructuring in Africa. His call for a continental credit rating agency reflects a broader push for African self-determination in the global economic order, a vision that resonates with leaders, economists, and citizens alike across the continent.

With momentum building and discussions already underway at the African Union and among financial stakeholders, the establishment of an African credit rating agency may soon become a reality, fulfilling one of the key pillars of Akufo-Addo’s legacy in championing African economic empowerment.

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