Metropol Corporation Limited took part in the ongoing discussions to operationalise the Africa Credit Rating Agency in Lusaka, Zambia to boost access to affordable capital and integrate the continent with global financial markets.
The two-day forum held on 27 to 28 March, 2024 was attended by key stakeholders in the credit market, among them Metropol Corporation’s Group Managing Director (GMD) Sam Omukoko and Metropol’s Chief Economist and Regulatory Affair Advisor, Ndiritu Muriithi (former Laikipia Governor).
Assessing Lending Risks in Africa
The forum focused on leveraging expertise from credit rating agencies and promoting the exchange of experiences regarding credit ratings.
Omukoko’s contribution touched base on crafting the agency’s assessment of lending risks in African countries.
This initiative, rooted in the decision made during the African Union Assembly of Heads of State and Government in January 2017, aims to bolster Africa’s access to affordable capital.
The African Credit Rating Agency seeks to develop sustainable solutions for supporting Africa’s financial landscape.
Also Read: Metropol Advocates for Structured Conversation on Credit Rating in Africa
By providing independent assessments, it aims to aid investors in making informed decisions regarding African bonds and private lending to countries.
22 African Countries Lack Credit Ratings
The establishment of this agency fills a crucial void since 22 African countries lack credit ratings from international agencies.
It also addresses the need for an alternative rating sector, offering services that were previously inaccessible due to cost constraints.
The agency will also provide environmental, social, and governance scores, as well as foreign direct investment ratings.
These services are deemed essential for supporting the development of domestic financial markets and fostering intra-continental integration.
