Risk aversion and credit ratings: Why Africa is paying more for debt

The African Union is in the process of setting up an African Credit Rating Agency, in part to challenge perceptions of the continent, and how risky it is to invest.

But creating a separate system won’t solve Africa’s problems, James Mwangi, the CEO of Equity Bank Group Holdings, told Devex.

“A parallel market is not a solution, because you want to plug into global markets,” said Mwangi, whose organization is one of Africa’s largest financial institutions.

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