Keypoints:
- AUDA–NEPAD expert calls for Africa-led credit reform
- Push for operationalising an African Credit Rating Agency
- Emphasis on domestic capital mobilisation for sovereignty
DR Baboloki Semele, Expert Validator of the African Union High-Level Panel on Emerging Technologies publications under the African Union Development Agency (AUDA–NEPAD), has called for a new financial dawn in Africa. Speaking at the 6th African Governance Seminar Series (AGOSS) held from October 30–31, 2025, in Kigali, he urged African nations to reclaim control of their credit narrative and reshape how the world evaluates their economies.
In his presentation titled Rethinking Sovereign Creditworthiness: Mobilising Domestic Capital to Secure Africa’s Financial Future, Dr Semele said it was time to ‘rewrite Africa’s credit story’ through domestic resilience, credible institutions, and a unified financial identity.
‘For too long, Africa’s credit story has been told about us, not by us. Today, we rewrite that,’ he declared to an audience of economists, policymakers, and governance experts.
Challenging global bias in credit ratings
Dr Semele warned that Africa’s over-reliance on external credit agencies such as S&P, Fitch, and Moody’s had created a distorted image of the continent’s true strength. He cited Ghana’s 2022 downgrade, which effectively shut it out of Eurobond markets despite relatively stable fundamentals, as a striking example of this imbalance.
Referencing a United Nations Development Programme (UNDP) report titled Reducing the Cost of Finance for Africa, he said African countries pay an average of 2.9 percentage points more in interest than equally rated peers elsewhere. This so-called ‘perception premium’, he added, cost the continent roughly $74.5bn annually.
Africa’s total external public debt accounts for less than 1.5 percent of global sovereign debt, yet the continent endures double-digit interest rates while heavily indebted economies such as Japan and Greece borrow below five percent. ‘This perception penalty perpetuates inequality and dependency,’ he cautioned.
Financial sovereignty through domestic strength
Dr Semele argued that African economies are resilient and reform-oriented, yet global assessments fail to recognise their progress. He pointed to the June 2025 downgrade of Afreximbank by Fitch Ratings as a wake-up call, warning that such decisions could heighten borrowing costs and undermine trade finance.
Outlining his vision for financial sovereignty, he said Africa must control how its economies are assessed, financed, and represented. That transformation, he explained, rests on three pillars: mobilising domestic capital, strengthening local markets, and creating a unified African credit voice.
He identified three core institutions to drive the change:
- AUDA–NEPAD, to coordinate infrastructure and development financing;
- APRM, to institutionalise governance reforms that enhance creditworthiness; and
- The African Credit Rating Agency (ACRA), to shape Africa’s own narrative through credible, independent ratings.
‘ACRA must be the Moody’s of Africa—a credible, independent voice that tells the real story of our resilience, innovation, and growth,’ he asserted.
Tapping Africa’s vast internal capital
Dr Semele emphasised that Africa was not poor but ‘under-leveraged’. The continent, he said, holds over $500bn in pension and insurance reserves, receives $100bn in annual diaspora remittances, and manages growing sovereign wealth funds that could be reinvested locally.
He cited Nigeria’s 2017 diaspora bond, which raised $300 million in less than a month, as evidence that Africans abroad are ready to invest in credible and transparent mechanisms. Among the tools he recommended were green bonds, sukuk (Islamic bonds), infrastructure funds, and diaspora bonds—all capable of unlocking long-term capital while reducing reliance on external borrowing.
For this to succeed, he said, transparency, regulatory alignment, and institutional credibility must guide financial governance. Rwanda, he added, has already proven that strong governance and predictable regulations can attract sustained investment, even in smaller markets.
A call for unity and credibility
Dr Semele urged African policymakers, private sector leaders, and civil society to build a united front in pursuit of financial independence. He called for the swift operationalisation of the African Credit Rating Agency, reform of domestic fiscal systems, and adjustments to global frameworks such as the G20 Common Framework and the IMF’s Debt Sustainability Analysis to better reflect African realities.
‘Capital does not flow where it is needed; it flows where it is trusted,’ he said. ‘To earn that trust, we must organise ourselves better at home through credible institutions, transparent governance, and a shared African financial identity.’
In closing, Dr Semele declared: ‘Control of capital equals control of destiny. Unified financial architecture equals liberation. Agenda 2063 is actionable, not aspirational.’
Supported by organisations including the Global Africa Nexus, the Youth for Gender Equality Foundation, and the African Daily Press, the AGOSS forum highlighted growing momentum for African-led financial reform.
As the conference ended, Dr Semele left delegates with a defining message: ‘Africa has been rated for decades by others. It is time to rate ourselves, control our narrative, and rise—building a continent that finances its own future with resilience, credibility, and pride.’
