‘African economies undervalued,’ Hichilema insists continent should push for credit rating agency to cut borrowing costs

President Hakainde Hichilema has insisted that African economies were being undervalued, leading to higher borrowing costs from international financial institutions.

He then argued that the operationalization of an African-owned credit rating agency was a necessity as the continent seeks to strengthen its position in global financial markets

Hichilema said this during the Presidential Breakfast Meeting on the establishment of the Africa Credit Rating Agency at the African Union headquarters in Addis Ababa, Ethiopia on Friday.

He emphasized the need for the organization to not only focus on political affairs but also prioritize economic growth, job creation, and food security for millions of Africans.

“The Credit ratings significantly influence capital inflows, borrowing costs, and investment decisions by international investors,” President Hichilema said.

He said to ensure fair and objective assessments, it was imperative that Africa’s economic outlook and sovereign balance sheets were evaluated by a rating agency that prioritizes the continent’s long-term economic interests.

“Establishing AfCRA will help address structural biases in global credit assessments and enhance Africa’s ability to attract investment on competitive terms,” President Hichilema said.

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He noted that once established as a professional and private sector driven rating agency, AfCRA should influence the approach and methodology of the current existing rating agencies in credit risk assessment for Africa.

During his visit to Ethiopia, President Hichilema is scheduled to engage in bilateral discussions with fellow Heads of State and Government, as well as meet with business leaders and key industry players, Clayson Hamasaka, the State House Communications Specialist said

While also in Addis Ababa, President Hichilema is expected to hold a joint press conference alongside SADC Chairman, President Emmerson Mnangagwa of Zimbabwe, and COMESA Chairman, President Évariste Ndayishimiye of Burundi.

“The leaders will collectively express their support for Samuel Maimbo’s candidacy for the Presidency of the African Development Bank (AfDB),” Hamasaka said.

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