President William Ruto has slammed global trading rating agencies, stressing that they have played a key role in crippling Africa's economic growth.
Speaking during a High-Level Presidential Breakfast Dialogue in Addis Ababa, on Friday, February 14, Ruto claimed that the agencies have been deliberately "misjudging" the continent's situation, by producing inaccurate ratings that have in turn led to exaggerated risks such as high borrowing rates and lack of investors.
The president, who termed the agencies "biased", said that they relied on fraudulent and outdated models, distorted assumptions that had overshadowed the continent's true economic potential.
"The whole system is very biased. The result is that they paint a very unfair picture of our economies, and this has devastating effects because it leads to distorted ratings of the situation and exaggerated risks for our country and our continent," he said.
"The prejudiced assessment comes at an enormous cost to Africa. It deters investment, distorts global trade, and derails progress towards sustainable development goals," he said.
According to the Head of State, the inaccurate ratings have cost the continent Ksh10 trillion in missed investment opportunities.
Ruto stressed the need to demand accurate rating standards from these agencies.
"The numbers tell a damning story. The Africa PRG Mechanism and the United Nations Development Programme placed the cost of biased credit ratings at a staggering $75 billion in lost investment opportunities," he said.
He also pointed out that despite the continent's wealth in minerals, vast land, and billions in diaspora remittances, it is still depicted by the agencies as an unfavourable ecosystem for investment.
"A system that punishes our economies while rewarding others, even when the fundamentals are comparable or even better," said Ruto.
He further emphasised the need to establish an African Credit Rating Agency, reinforced with credible data and high reporting standards, to reflect the real picture of the opportunities on the continent and streamline economic stability.
"An African credit rating is not just an alternative; it is, in my opinion, an imperative. Africa will not continue to accept being misjudged by scales that overlook our reality," he said.
With the campaigns over and the election preparation process underway, President William Ruto is among the 55 Heads of State from the African Union member states who are in Addis Ababa, Ethiopia for the polls.
Should Odinga clinch the top role, he will be tasked with presiding over the overall responsibility for the Commission’s administration and finances and promoting the African Union's objectives.
