The African Development Bank (AfDB) has entered into a $700,000 agreement with Prosper Africa, a U.S. government initiative, to establish an online credit rating data platform aimed at transforming how international investors evaluate risks in African markets.
The platform is designed to improve access to reliable data and bridge information gaps that have often led to inaccurate perceptions of investment risks in Africa. By aligning perceived risks more closely with actual conditions, the initiative seeks to lower financing costs for African economies.
Key features of the project include providing African nations with tools to better understand credit rating methodologies, simulate credit ratings, and engage effectively with rating agencies. This will help ensure that the investment risks of African economies are more accurately reflected, enhancing their appeal to global investors.
“The platform will serve as a public good, offering high-quality, timely information essential for informed policymaking,” said Beth Dunford, AfDB Vice President for Agriculture, Human and Social Development. She emphasized that the initiative would lead to a more precise representation of investment risks across the continent.
Prosper Africa’s involvement highlights its commitment to strengthening U.S.-Africa economic ties by increasing trade and investment flows. Since 2023, the initiative has focused on reshaping investor perceptions of African markets, with an emphasis on addressing challenges related to sovereign credit ratings and information asymmetries.
The AfDB will host and manage the platform, utilizing its extensive expertise and network to ensure the delivery of reliable and comprehensive data, further fostering investor confidence in African markets.