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Senegal's President Macky Sall, and current chairperson of the African Union. (Photo: Reuters)

This week, Senegal’s president and current chairperson of the African Union, Macky Sall, called for the establishment of the rating agency due to what he explained as the problematic nature of the system of assessment by international organisations.

Senegal's President Macky Sall, and current chairperson of the African Union. (Photo: Reuters)
Senegal's President Macky Sall, and current chairperson of the African Union. (Photo: Reuters)

Senegal's President Macky Sall, and current chairperson of the African Union. (Photo: Reuters)

This week, Senegal’s president and current chairperson of the African Union, Macky Sall, called for the establishment of the rating agency due to what he explained as the problematic nature of the system of assessment by international organisations.

The idea has been part of the continent’s discourse for decades now as leaders complained that it is expensive for countries to borrow from global debt markets.

Institute for Security Studies Southern Africa's project leader, Liesl Louw-Vaudran, said that the old notion of forming a Pan-African credit rating agency could prove a challenge for the continent’s countries.

She explained that the need for such institutions to be independent or perceived to be so was among the hurdles it could face.

"This is something that the African Union itself does, especially things like creating a rating agency because that's something that its very expensive to do. I know that they're having with discussions around this, around Brics, a global ratings agency for itself, not just for Africa," she said.

The agencies issue sovereign credit ratings to countries that analyse the general creditworthiness of a country or government and have always been a thorn on the side of politicians who feel that research samples are biased against some countries.

Complaining about the status quo, Sall told delegates at the Dakar Economic Conference that in 2020 when all economies were suffering from the effects of the COVID-19 pandemic, 18 of 32 reviewed African economies were downgraded.

Source: EWN

 

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