The agency which would craft its own assessment of the risks in lending to African countries, would be based on the continent. It will also add context to the information investors consider when deciding whether to buy African bonds or lend privately to countries. The AU, and leaders of member nations, allege that the “big 3” ratings agencies, do not fairly assess the risk of lending to African countries, and say they are quicker to downgrade them during crises such as the pandemic. The agency would be self-funded and private sector driven with AU oversight.
Source : Reuters