Following the official launch of the Africa Credit Rating Agency (AfCRA) in Port Louis, African Union (AU) Commission Chairperson Mahmoud Ali Youssouf has convened a high-level roundtable focused on lowering the continent’s borrowing costs and reforming access to international capital markets.
Held under the theme “Beyond AfCRA: Improving the Africa Risk Premium and the De-risking Africa Initiative,” the session brought together international financial experts and policymakers to address how biased sovereign credit ratings inflate borrowing costs for African nations.
According to United Nations estimates, unfair risk assessments cost African sovereigns up to $74.5 billion annually in excess interest payments, severely constraining public investments in infrastructure, health, and economic development.
Delegates discussed co-ordinated financial reforms aimed at strengthening continental institutions, implementing sovereign de-risking mechanisms, and establishing a fairer risk framework to ensure affordable, long-term development financing across Africa.
–ChannelAfrica/Joao Pedro Yabala–
