Search Climate Insights Directory

This policy brief examines how the methodologies of major private credit rating agencies (CRAs) negatively impact African development by inflating risk premiums and increasing the cost of capital. It argues that the current system is marred by oligopolistic structures, subjective biases, and a lack of transparency, which hinders access to financing for infrastructure and climate projects. The document advocates for the establishment of the Africa Credit Rating Agency (AfCRA) and a global fiscal body to create a more equitable financial architecture, while advising African nations to improve data transparency, debt management capacity, and macroeconomic fundamentals.