Partners U.S. on credit rating platform for African markets

Mariam Abeeb

The African Development Bank (AfDB) has signed a 700,000 dollars Donor Contribution Agreement with Prosper Africa, a U.S. Presidential initiative, to develop a Credit Rating Online Data Platform for African markets.

Beth Dunford, AfDB Vice-President for Agricultural, Human, and Social Development, in a statement on Saturday, said the United States Department of the Treasury was also part of the agreement.

According to Dunford, the initiative aims to reshape how international investors assess risk in African markets.

“The platform will serve as a vital online data and analytical tool to address long-standing challenges in data accessibility, which have historically skewed risk perceptions of African economies.

” By bridging the gap between perceived and actual investment risks, the platform is expected to lower funding costs for the AfDB’s regional member countries (RMCs).

“The project will also enhance the analytical capacity of RMCs, helping them better understand credit rating methodologies and simulate credit ratings,” Dunford said.

According to her, this is expected to strengthen their engagements with credit rating agencies and present a more accurate risk profile to international investors.

“The platform aims to provide high-quality, comprehensive, and timely information as a public good, which is critical to evidence-based policymaking.

“The platform will improve the evaluation of investment risks across Africa and will be accessible to sovereign entities, credit rating agencies, investors, and researchers.

“The initiative aligns with the AfDB’s Ten-Year Strategy (2024-2033) and its commitment to enhancing economic governance on the continent,” she said.

Prosper Africa’s involvement reiterates its mission to strengthen economic ties between the United States and Africa by catalysing two-way trade and investment flows.

Since 2023, the initiative has prioritised reshaping investor perceptions of African markets, particularly focusing on sovereign credit ratings.

The AfDB will host and manage the platform, ensuring quality assurance and leveraging its extensive expertise in African economic data.

To achieve the goal, Maida urged stakeholders to engage constructively, provide feedback, and contribute ideas “that will help shape the future of A2P messaging in Nigeria”.