The United Nations has said that inaccurate and context-poor sovereign credit ratings cost African countries about $74.5 billion annually through excessive borrowing costs and lost financing. The UN Office of the Special Adviser on Africa disclosed this ahead of the formal launch of the Africa Credit Rating Agency (AfCRA) in Port Louis, Mauritius. AfCRA is expected to provide independent, Africa-focused assessments of sovereigns, sub-sovereigns, companies, and institutions. The UN described the situation as a major development penalty, noting that Africa's actual default rate is lower than its credit ratings imply.
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