AU invites credit rating champion Mwambazi for review meeting

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AU invites credit rating champion Mwambazi for review meeting

INTERNATIONAL Credit Rating Agency (ICRA) Zambia country director David Mwambazi says it is exciting that the push to have an African credit rating has gained momentum, with full implementation expected next year.

Mr Mwambazi has been picked as one of the delegates to the 9th Ad hoc Committee meeting on African Peer Review Mechanism (APRM) Support for African Union member states which is expected to adopt a roadmap for the operationalisation of a continental credit rating.

The meeting will take place in Cairo , Egypt in October.

Mr Mwambazi was recognised for his efforts in pushing for a continental credit rating body.

“On behalf of the African Peer Review Mechanism Continental Secretariat, I wish to convey our sincere appreciation to you for the continued valuable support always provided to the APRM,” the invitation letter states.

The APRM is often described as “Africa’s unique and innovative approach to governance” with the objective of improving governance dynamics at the local, national, and continental levels.

Mr Mwambazi said his invitation to the continental body’s governance organ is also a recognition of the importance of ICRA’s presence in Zambia.

ICRA is one of the fastest-growing credit rating agencies globally, after Moody’s, S&P and Fitch, with a presence across Europe, Africa, and Asia.

The Securities and Exchange Commission recently accredited and approved ICRA Rating Agency Limited to operate as a credit rating agency in Zambia.

Mr Mwambazi insists that the emergence of a continental credit rating agency will have a positive impact.

There has been a push for Africa to have its own credit rating to provide fairer and more reliable information about the credit status of countries on the continent.

AU commissioner for development, trade, tourism, industry, and minerals Albert Muchanga announced in July that a new credit rating agency designed to address the needs of African sovereign borrowers is expected to be operational by next year.

He said the agency aims to provide a “more tailored” approach to credit ratings for African nations, which have traditionally faced challenges related to high borrowing costs and inadequate representation in global rating systems.

According to Mr Muchanga, the initiative is driven by a desire for a fairer evaluation and to improve the financial conditions under which African countries operate.

The credit rating will operate independently of the AU or any other regional bloc.

Credit: Zambia Daily Mail

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