AfDB, US Seal $700K Deal to Improve Credit Rating Data for African Markets
The African Development Bank (AfDB) has joined forces with Prosper Africa, a U.S. presidential initiative, in a groundbreaking effort to enhance access to credit rating data across African markets. The two organizations have signed a $700,000 donor contribution agreement aimed at developing an online platform that will provide crucial data and analytical tools for assessing investment risks in Africa.
Beth Dunford, AfDB’s Vice-President for Agricultural, Human, and Social Development, highlighted the importance of the partnership in a statement released on Saturday. She also revealed that the U.S. Department of the Treasury is a key partner in the initiative. The platform, she said, will play a pivotal role in addressing the long-standing challenges of data accessibility, which have historically skewed perceptions of investment risk in African economies.
“This platform will serve as a vital online data and analytical tool that will help reduce the perception gap between perceived and actual investment risks,” Dunford explained. “By providing accurate, up-to-date information, the platform will lower funding costs for AfDB’s regional member countries (RMCs) and enhance their analytical capacity to better understand credit rating methodologies.”
The new initiative aligns with AfDB’s Ten-Year Strategy (2024-2033), focusing on enhancing economic governance across the continent. The platform is expected to provide high-quality, comprehensive, and timely information that will support evidence-based policymaking and offer a valuable resource for sovereign entities, credit rating agencies, investors, and researchers.
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The collaboration also marks an important step in reshaping investor perceptions of African markets. Since 2023, AfDB and Prosper Africa have focused on improving sovereign credit ratings, which are critical for attracting investment and facilitating trade.
“The platform will enhance the evaluation of investment risks across Africa,” Dunford continued. “It will empower regional governments, financial institutions, and investors with the analytical tools necessary to make informed decisions.”
Prosper Africa’s involvement underscores its mission to deepen economic ties between the United States and Africa, promoting two-way trade and investment. The initiative also complements ongoing efforts to build an African-led continental credit rating agency, a project AfDB announced in December 2024. This agency aims to provide an alternative to Western credit rating agencies, whose assessments have often been seen as biased against African nations.
