Africa: AfDB Partners with U.S. to Launch Credit Rating Platform for African Markets

The African Development Bank (AfDB) has entered into a partnership with Prosper Africa, a U.S. Presidential initiative, to develop an innovative Credit Rating Online Data Platform aimed at transforming investment perceptions of African markets. As part of the collaboration, the AfDB signed a $700,000 Donor Contribution Agreement, with the U.S. Department of the Treasury also participating in the initiative.

Beth Dunford, AfDB Vice President for Agricultural, Human, and Social Development, highlighted the platform’s objective of reshaping how international investors assess risks in African economies.

“The platform will address long-standing challenges in data accessibility, which have historically contributed to skewed risk perceptions of African markets,” Dunford stated.

By bridging the gap between perceived and actual investment risks, the platform aims to lower funding costs for the AfDB’s regional member countries (RMCs). Additionally, it will enhance their capacity to understand credit rating methodologies, simulate credit ratings, and engage more effectively with credit rating agencies to present accurate risk profiles to international investors.

Empowering Africa with Better Investment Data
Dunford emphasized the platform’s role as a public good, providing high-quality, comprehensive, and timely data to improve evidence-based policymaking. It will be accessible to sovereign entities, credit rating agencies, investors, and researchers, improving the evaluation of investment risks across Africa.

The initiative aligns with the AfDB’s Ten-Year Strategy (2024-2033) and underscores its commitment to strengthening economic governance across the continent. Prosper Africa’s involvement further reflects its mission to enhance economic ties between the U.S. and Africa by promoting two-way trade and investment.

Since 2023, Prosper Africa has focused on reshaping investor perceptions of African markets, particularly sovereign credit ratings. The AfDB will manage and host the platform, ensuring quality assurance and leveraging its expertise in African economic data.

Strengthening Economic Ties and Capital Flows
This partnership exemplifies strong African ownership combined with the resources and support of Prosper Africa, creating a foundation for more accurate representations of investment risks. The initiative is expected to foster increased capital flows into Africa and encourage greater global investor confidence in the continent.