President Bola Tinubu has contributed to an ongoing discussion about how African economies and institutions are assessed in global financial markets. In an Op-Ed published in the Financial Times, he called for the establishment of an Africa-owned credit rating agency, suggesting that such an institution could add a helpful perspective to existing global assessment frameworks.

The President noted that African borrowers often face relatively high financing costs, a situation he linked to what is sometimes described as an “Africa premium”—the gap between perceived and actual economic risk. His remarks come at a time when the International Monetary Fund has projected Africa to be among the fastest-growing regions globally this year.

Growth Prospects and Rating Outcomes

Despite positive growth expectations, only a small number of African countries currently hold investment-grade credit ratings. President Tinubu suggested that this contrast reflects the complexity of assessing diverse economies within standardised global frameworks.

The Afreximbank Experience in Context

Recent attention on the African Export–Import Bank offers a useful case study within this broader conversation. When questions arose regarding aspects of the bank’s credit profile, the discussion extended beyond financial metrics to include the unique role of development finance institutions.

Afreximbank’s involvement in supporting member states during periods of economic stress was interpreted in different ways. Some external observers focused on the associated risk exposure, while African stakeholders viewed the same actions as consistent with the bank’s development mandate. Rather than indicating a problem, the episode highlighted the challenge of capturing such dual objectives within conventional assessment models.

Balancing Mandate and Measurement

Institutions such as the African Peer Review Mechanism have pointed out that development banks operate under expectations that differ from those of commercial financial institutions. They are required to remain financially sound while also acting counter-cyclically and supporting stability during difficult periods.

Credit rating frameworks, designed to promote comparability across markets, naturally prioritise standardised indicators. In some cases, however, these tools may benefit from additional contextual explanation when applied to institutions with policy-driven and treaty-based foundations.

The Role of Transparency and Engagement

The Afreximbank episode also underscored the importance of clear communication. Sovereign exposure is a core element of development finance, and transparent reporting around governance, risk concentration, and provisioning practices helps external stakeholders better understand institutional strategies.

In response to questions raised, Afreximbank emphasised its internal controls and forward-looking risk management approach. For African development institutions more broadly, this reinforced the value of ongoing dialogue with investors and rating agencies.

Complementing Global Standards with Local Insight

Within this evolving discussion, the African Union has supported conversations around an African Credit Rating Agency. The intention is not to replace existing global standards but to complement them by incorporating regional expertise and local economic context.

President Tinubu’s contribution aligns with this perspective. His call highlights the potential benefits of adding African-based analysis to a global system that continues to adapt as financial markets grow more diverse.

A Constructive Path Forward

Credit assessments play a significant role in shaping borrowing costs, which in turn influence the scale and timing of development finance across the continent. As such, moments of reflection such as the Afreximbank ratings discussion are valuable opportunities for learning on all sides.

Viewed through this lens, the episode is best understood as part of a broader, constructive conversation about how African risk is assessed and communicated. Handled thoughtfully, it can help strengthen understanding, encourage incremental improvements, and contribute to a more resilient and inclusive global financial architecture.