Former President Nana Addo Dankwa Akufo-Addo has reignited calls for the creation of an African-led credit rating agency, arguing that current global systems unfairly penalise African nations and undermine their development financing prospects.
Speaking on the sidelines of the 32nd Annual Meetings of the African Export and Import Bank (Afreximbank) in Abuja, Nigeria, the former Ghanaian leader praised the bank for stepping up when international markets turned their backs on the continent during the COVID-19 pandemic.
“At a time when Ghana couldn’t access the international market and funding was virtually impossible, Afreximbank came through with $750 million in 2022.
“When everyone else turned away, Professor Oramah and his team stood with us. That’s why Ghanaians, and I as former President, will always be grateful to them,” former President Akufo-Addo recalled.
Beyond the gratitude, however, Mr Akufo-Addo raised fundamental questions about the fairness of global financial structures, particularly how rating agencies assess African economies.
“It is simply not fair. Countries in similar economic positions elsewhere receive better ratings than African countries, just because they’re not African.
“We are constantly forced to pay higher risk premiums based on skewed assessments,” Mr Akufo-Addo reiterated.
His comments come in the wake of Fitch’s recent downgrade of Afreximbank’s credit rating to just one notch above junk, citing, among other reasons, Ghana and Zambia’s indication that they would include Afreximbank debt in their commercial debt restructuring plans.
Ghana, however, insists the bank does not meet the multilateral lender definition under the IMF’s Common Framework and should be treated like other commercial creditors.
Former President Akufo-Addo emphasised the need for Africa to control its own financial institutions.
“We cannot develop our continent when the levers of financing are not in our hands,” he said.
He added that African nations must build and support institutions like the Afreximbank and the African Development Bank.
30% reserves in African multilateral institutions
Former President Akufo-Addo reiterated a proposal he made at a recent African Union summit, urging African countries to deposit 30% of their sovereign reserves with African multilateral institutions.
“These funds are sitting idle in foreign accounts earning next to nothing, while our countries struggle to finance infrastructure and development.”
Afreximbank’s footprint in Ghana extends well beyond COVID-19 support.
The bank has disbursed over $2 billion to support trade-related and development initiatives in Ghana, ranging from cocoa syndicated loans to forex swaps with local banks, and power sector interventions such as the Volta River Authority support in 2014 to help resolve the country’s energy crisis.
As Ghana continues negotiating its debt treatment plan, its standoff with Afreximbank remains a flashpoint.
However, at the heart of Mr Akufo-Addo’s message was a call for continental self-determination.
“If America says America First, Africa must also say Africa First. Let’s believe in ourselves and invest in our own future.”
