Ruto calls for reform of global credit systems, cites Africa’s unfair treatment
By Cynthia Lodite, August 21, 2025President William Ruto has demanded proper reforms within the global financing systems while criticising the current credit architecture for being unfair to African countries.
On his part, Ruto argues that the existing global credit rating systems fail to reflect Africa’s unique economic realities, often resulting in punitive borrowing terms that hinder development within African countries.
Ruto made his remarks on Thursday, August 21, 2025, at the 9th TICAD plenary session on the economy in Yokohama, Japan.
“I have been a strong proponent of reform of the international financial architecture; the current global credit system often overlooks Africa’s unique economic realities and unfairly penalises our countries during a period of global distress,” Ruto said.
The Head of State further highlighted the challenges most African countries go through during the borrowing of finances to support countries’ development, revealing that changes need to be made to unlock affordable and sustainable financing for development.
In addition, Ruto further voiced support for the establishment of an African Credit Rating Agency, a homegrown solution aimed at complementing global systems while addressing long-standing structural inequalities.
“This must change; progressive reforms are essential to unlock affordable, predictable, and sustainable financing for development. I therefore support the proposal to establish an African credit agency complemented by reforms in global credit systems to address structural inequalities,” Ruto noted.
Notably, according to Ruto, such an agency would offer fairer assessments and reduce Africa’s dependency on traditional Western credit rating institutions, which often assign low ratings that increase borrowing costs for African countries.
African Credit ratings
Ruto’s remarks come amid growing consensus among African leaders on the need for financial sovereignty and fairer access to international capital.
In April 2025, key African experts convene in Washington to advance dialogue on an African-led credit rating ecosystem, with discussions on developing a fair, transparent, and inclusive credit rating for Africa being a central discussion.
With more than 30 African countries subject to sovereign credit ratings, the decisions of global rating agencies significantly impact debt sustainability and access to international financial markets.
At a high-level dialogue held on the sidelines of the 2025 IMF–World Bank Spring Meetings, African institutions and global credit rating agencies reaffirmed their commitment to developing a fair, transparent, and inclusive credit rating ecosystem for Africa.
Organized by the African Union’s African Peer Review Mechanism (APRM), the United Nations Development Programme (UNDP), the United Nations Economic Commission for Africa (UNECA), AfriCatalyst, and the African Center for Economic Transformation (ACET), and hosted at the Open Society Foundations, the dialogue brought together senior representatives from Moody’s, S&P, and Bank of America for a candid discussion on financing solutions for African countries.
Against a backdrop of rising market volatility, sovereign defaults, and constrained fiscal space, the dialogue aimed to address urgent reforms in Africa’s credit rating framework. Speakers identified structural issues such as data gaps, methodological opacity, and under-engagement between African governments and the ‘big three’ credit rating agencies (Moody’s, S&P, and Fitch) as barriers to