Africa Must Control Its Economic Narrative, Afreximbank Chief Elombi Demands, Citing Need for Ratings Agency

Dr. George Elombi, President of the African Export-Import Bank (Afreximbank), has renewed calls for an African-owned credit ratings agency, asserting that the continent must cease allowing foreign institutions to dictate its economic fortunes and borrowing costs. Speaking at Afreximbank's mid-year media roundtable in Abuja, Elombi stressed the imperative for Africa to own the institutions shaping investor perceptions, noting that other global regions already possess their own ratings agencies.

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Why should we not have one when other regions have one?

Elombi argued that an African ratings institution would offer a more equitable assessment of the continent's economies and development bodies. He pointed out that international perceptions significantly influence Africa's access to capital, borrowing rates, and investment flows, making it essential for Africans to articulate their own economic story. He accused international rating agencies of employing inconsistent methods that unfairly penalize African institutions, citing Afreximbank's experience where strong financial standing is overshadowed by perceived risks of the African operating environment.

The Afreximbank chief described this as a "double penalty," where African-based assets are devalued, and additional penalties are applied simply due to the continent of operation. He countered that Africa's loan default record does not support such negative assumptions, highlighting the continent's demonstrated resilience and lower losses than often portrayed. Elombi emphasized that altering the narrative surrounding Africa is as critical as mobilizing finance, as distorted perceptions have historically undermined confidence despite significant progress.

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The institution effectively suffers a “double penalty”, first through the discounting of the value of African-based assets and then through additional notches applied solely because it operates in Africa.

Furthermore, Elombi noted the growing momentum of the Pan-African Payment and Settlement System (PAPSS), with 28 African central banks now participating. He also revealed that 80% of Afreximbank's assets are deployed as loans across the continent, underscoring the bank's commitment to African development. He believes journalism, like banking, should champion development by showcasing both Africa's challenges and successes, rather than perpetuating stereotypes of conflict and poverty.

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Changing the narrative about Africa was as important as mobilising finance, stressing that distorted perceptions have for decades undermined confidence in the continent despite significant progress in infrastructure, industrialisation, and trade.