African Union launches rating agency to tackle bias by global firms

The African Union has announced the launch of its own rating agency, the African Credit Rating Agency (AfCRA), to address biases by global rating firms.

A study by the Africa Peer Review Mechanism and the United Nations Development Programme highlights that biased grading has cost Africa a staggering USD75 billion in lost opportunities.

According to Ruto, improving Africa’s rating by one notch could unlock $15.5 billion in additional funding for the continent, which could help replace a significant portion of official development assistance or be invested in Africa’s infrastructure needs.

Despite Africa’s abundant natural wealth, only two African nations are currently ranked as investment grade. “It is time for Africa to use the right scale, one that reflects its true weight,” Ruto added.

The African Union has previously criticized global rating agencies’ characterization of African economies. In January, the AU pointed out that Moody’s Ratings’ fluctuating assessment of Kenya’s outlook was flawed.

“As the continent continues its march towards economic integration and resilience, the establishment of the African Credit Rating Agency (AfCRA) represents a pivotal step in asserting Africa’s position on global financial governance.”

The agency aims to provide fair, transparent, and development-focused credit ratings that reflect the realities and potential of African economies.

The idea of creating an African credit rating agency has been in the pipeline for years. In September 2023, the AU officially announced its plans to move forward with the project.

This decision comes after repeated criticism of the “Big Three” rating agencies—Moody’s, Fitch, and S&P—accused of applying a “negative bias” when assessing African economies.

Critics argue that these ratings often lead to higher borrowing costs for African countries and, in some cases, make it harder for them to access international financial markets.

The push for an African credit rating agency indeed gained momentum in 2022 when Senegal’s former president Macky Sall, who was then chair of the AU, called for a new system to “end the injustices” faced by African countries.

@PatternFin

OKX Weekly Crypto update;

@PatternFin

የብሔራዊ ባንክ የግምጃ ቤት ሰነድ ወለድ ከግሽበት እና ፖሊሲ ምጣኔ በላይ መሆኑን አስታወቀ

የኢትዮጵያ ብሔራዊ ባንክ የግምጃ ቤት ሰነዶች (Tbills) የወለድ ምጣኔ ላይ ከፍተኛ ጭማሪ ማሳየቱንና ለመጀመሪያ ጊዜ ከፖሊሲ ምጣኔ በላይ መሆኑን አስታውቋል፣ ይህም አዎንታዊ ምጣኔን ያመለክታል ነው የተባለው።

የኢትዮጵያ ብሔራዊ ባንክ የካቲት 6፤2017 ዓ.ም. ባሳተመው አጭር ሪፖርት መሠረት የአንድ ዓመት የግምጃ ቤት ሰነዶች የወለድ ምጣኔ በበጀት ዓመቱ መጀመሪያ ላይ ከነበረው ጋር ሲነጻጸር በ57 በመቶ ጨምሯል።

በሐምሌ ወር 10 በመቶ የነበረው ምጣኔ በስድስት ወራት ውስጥ ወደ 15.7 በመቶ ከፍ ብሏል፣ ይህም ጥር ላይ ከተመዘገበው የ15.5 በመቶ የዋጋ ግሽበት እና የ15 በመቶ የፖሊሲ ምጣኔ አንጻር ከፍተኛው መጠን ሆኖ እንዲቀመጥ ያደረገ ነው።

በቲ-ቢል ምጣኔዎች ላይ የቅርብ ጊዜ ጭማሪ የአለም አቀፋዊ የገንዘብ ድርጅት (አይኤምኤፍ ) የሚሰጠውን ምክር ተከትሎ የመጣ ሲሆን፣ ይህም ማዕከላዊ ባንክ ተጨማሪ ተጫራቾችን ለመሳብ እና ሀብት ለማሰባሰብ የሚረዳ መሆኑ ነው አይኤምኤፍ ሲገለጽ የቆየው፡፡

አሁን ላይ የተቀማጭ ወለድ ከግሽበት አንጻር በከፍተኛ መጠን ቅናሽ ያለው መሆኑ ይጠቀሳል፡፡ በተመሳሳይ የመግስት የግምጃ ቤት ሰነድ ጨረታ ላይ ማእከላዊ ባንኩ የሚቀበለው የወለድ ምጣኔ ከ10 በመቶ አይበልጥም ነበር፡፡

በመሆኑም ከፍ ያለ ወለድ የሚጠይቁ ተጫራቾች በጨረታው አያሸንፉም ነበር፡፡ ሆኖም ባለፉት ጥቂት ወራት ባንኩ ከፍ ያሉ የወለድ መጠኖችን እየተቀበለ መምጣቱ ነው የሚነገረው፡፡ #Capital

@PatternFin

The richest man in Africa, Aliko Dangote, will set up a second production line at his cement factory in Ethiopia – increasing its capacity to 5 million tonnes per annum, up from 2.5 million tonnes currently.

In addition, the Nigerian billionaire’s conglomerate will set up a new grinding unit near the Ethiopian capital, with a capacity of 3 million tonnes per annum and a Urea production plant.

Dangote is also interested in Ethiopia’s sugar industry, including enhancing operations at the Omo Kuraz sugar company.

#TheKenyanWallStreet

@PatternFin

African stock exchanges and Export Growth;
An Analytical Perspective

African stock exchanges play a vital role in financing export-driven industries, driving economic growth and global competitiveness. Understanding this connection is key for investors and policymakers.

Read the attached resourceful document!

Doc prepared by #Bruh_Finance

@PatternFin

Ethiopia bond investors accuse IMF over debt relief

Debtholders committee says government finances boosted by jump in coffee and gold exports

#TheFinancialTimes

Link; https://www.ft.com/content/40c35ffd-fa86-445f-9c4c-dc434b61de25

Africa's richest man just got a lot richer.

Meet Aliko Dangote.

He's now worth an estimated $23.9 billion.

Almost double the $13.9B Forbes pegged him at last year.

And according to an article published in the magazine just yesterday, he insists he's even richer. 👀

Here's how the GOAT of African industrialization got there.

Born in Kano, Nigeria, in 1958.
To a wealthy trading family.

Started as an 8-year-old trader.
Used his allowance to buy sweets in bulk.

Recruited a team to sell at school.
Collected the profit.

Went on to study business.
In Cairo at Al-Azhar University.

Graduated.
Got a $500k loan from his uncle.
Started an import-export trading firm in Lagos.

But he had bigger dreams.

Nigeria was transitioning from military rule to democracy.
He saw an opportunity to build, not just trade.

Seized it.
Pivoted to manufacturing.

Started with sugar, flour, and cement.
Built Dangote Cement Plc into an empire — generating 60%+ gross margins most years.

Then in 2013, he made his boldest bet (yet).

A $23 billion investment in oil refining.
Africa's largest petroleum refinery.

Everyone said it couldn't be done.
11 years of setbacks and challenges.

65 million cubic meters of sand dredged.
Still ~$3 billion in outstanding debt today.

But he persisted.

Today, that bet has paid off:

• Africa's largest refinery
• Processing 500,000 barrels per day
• 7th largest globally
• Made Nigeria a net exporter of jet fuel, naphtha, and fuel oil
• Doubled his fortune to $23.9B (at minimum)

His mission now?

Provide a blueprint for African industrialization.

"Africa has been a mere dumping ground for finished products. We have to build our own nation by ourselves. We have to build our own continent by ourselves."

Next up?

• Taking the refinery public
• Building a subsea gas pipeline
• Doubling fertilizer production

"I've been fighting battles all my life, and I haven't lost one yet." — Aliko Dangote

@PatternFin

Exciting Update!

AliExpress is set to start transactions in local currency beginning February 24, 2025! This significant milestone will greatly enhance trade and business operations in Ethiopia and other African countries, making it easier for local entrepreneurs to engage in international commerce.

This move not only simplifies transactions but also fosters a more inclusive trade environment. Let's embrace this new era of smoother trade!

@PatternFin

UK Deputy PM Secures USD598 Million Investment Deal in Ethiopia Amid Political Criticism

UK Deputy Prime Minister Angela Rayner has concluded a high-profile visit to Ethiopia, securing a USD 598 million investment agreement to bolster trade and economic cooperation between the two nations. The Times reports that the deal, backed by British private equity firms, will inject capital into Ethiopia’s infrastructure, manufacturing, and financial sectors as the country progresses with market liberalisation.

Rayner met with Ethiopian Prime Minister Abiy Ahmed and senior officials to discuss trade expansion, financial market development, and regional cooperation. The visit comes at a pivotal moment for Ethiopia, which launched the Ethiopian Securities Exchange (ESX) on January 10 and is intensifying efforts to integrate into the global economy through its bid to join the World Trade Organization (WTO). British firms are well-positioned to capitalise on these developments, with increasing interest in Ethiopia’s evolving financial landscape.

Beyond investment and trade, discussions also centred on technological collaboration, particularly in artificial intelligence. The UK has been at the forefront of AI development, and Ethiopia’s ambitions in digital transformation offer potential avenues for joint initiatives.

However, Rayner’s diplomatic engagement has not gone without controversy. According to the Times, critics within the Conservative Party have questioned the timing of her visit, arguing that she should prioritise domestic economic challenges, including housing and local governance reforms. No. 10 defended the trip, asserting that strengthening UK-Ethiopia ties is a strategic priority that will benefit British businesses and enhance the UK’s global economic footprint.

#EBR

@PatternFin

Aman & Partners authored the Ethiopia legal section of "Trends and Developments 2025" in the Chambers and Partners publication.

Current legal issues covered include banking sector liberalization, currency floating, capital market, joint venture with EIH, PPP, new VAT legislation, among others.

@PatternFin

Financial inclusion in Africa often turns into financial extraction.

That's according to Dr. Milford Bateman, a development studies and economics professor who researches & teaches internationally about the economics of development.

@PatternFin

Financial inclusion in Africa often turns into financial extraction.

That's according to Dr. Milford Bateman, a development studies and economics professor who researches & teaches internationally about the economics of development.

"Many innovations, including financial innovations, start out as beneficial to the poor. But the problems start, in general, when such financial innovations are then commercialized and privatized," he notes.

"Once private fintech corporations conquer a critical customer base and become oligopolists, or even monopolists — which is the ultimate goal of their scalable data-driven business models — the situation radically changes."

According to Bateman, Africa offers a prime example.

"M-PESA Africa was started with the help of the UK’s international development agency and everyone involved professed to having good intentions; they hoped that M-Pesa would be 'a great way of helping Kenya’s poor.'"

So the mobile money platform launched as a significantly cheaper alternative to informal money transfers, genuinely helping lower-income Kenyans move money.

But, in Bateman's view, market dominance changed everything:

• M-Pesa started with more affordable transfers, resulting in a dominant market position

• Began increasing fees soon after, reaching up to 20% for sending small amounts

• Only reduced fees during COVID when forced by government intervention

• Continued paying large dividends to foreign investors during the pandemic

• Profits became prioritized over financial inclusion

• Local entrepreneurs increasingly view M-Pesa as stifling fintech innovation, not enabling it

"The poor are no longer the beneficiaries of financial innovation, but increasingly its hapless victims," Bateman argues.

And he notes that, "To an extent, the Kenyan government since around 2020 has begun to try to rein in [M-Pesa parent company] Safaricom."

This raises important questions about fintech's role in financial inclusion on the continent, and the tech ecosystem's role in development more broadly:

Are sustainable solutions that genuinely benefit Africa's underserved being built? Or just new forms of value extraction?

Without the right guardrails in place, what's meant as inclusion can easily become extraction.

Good intentions aren't enough.

#Afridigest

@PatternFin

Ali Hussein (#ALITALKSTECH) reacts on the article published by #Milford_Bateman

I read this piece by Milford Bateman with interest and chagrin.

📢 It's time we challenge the negative narrative about fintech and microfinance in Africa! 🌍

This article, once again, positions Westerners as "experts" on African economic issues. Let's set the record straight:

🚫 No more overgeneralizations about diverse African economies
🚫 No more ignoring African voices and innovations
🚫 No more overlooking local context and success stories

Here's what's really happening:

✅ African-led fintech is revolutionizing financial inclusion (M-Pesa, anyone? 📱💰)
✅ Local entrepreneurs are tailoring solutions to unique market needs
✅ African governments are actively shaping regulations to benefit their citizens

It's high time we amplify African perspectives in these discussions. We're not just subjects of Western analysis – we're innovators, regulators, and drivers of our own economic future.

Let's celebrate our successes, acknowledge our challenges, and most importantly, tell our own stories. 🗣

African fintech is diverse, dynamic, and determined. Don't let anyone tell you otherwise! 💪🏾
(Ali Hussein)

@PatternFin

አሊባባ በኢትዮጵያ በብር ክፍያ ከነገ ጀምሮ መቀበል ሊጀም መሆኑን አሳወቀ

አለም አቀፉ ግዙፍ የኤሌክትሮኒክስ ግብይት ተቋም አሊባባ፣ ከሰኞ የካቲት 17 ቀን 2017 ዓ.ም ጀምሮ በኢትዮጵያ በብር ክፍያ መቀበል እንደሚጀመር አሳዉቋል።

ይህ እርምጃ ኢትዮጵያውያን በአሊ ኤክስፕረስ ላይ በቀላሉና በአገር ውስጥ ገንዘባቸው እንዲገበያዩ ያስችላቸዋል።

አሊባባ ይህን ውሳኔ የወሰነው ለአፍሪካ ተጠቃሚዎች ይበልጥ ተደራሽ ለመሆንና በዓለም አቀፍ የክሬዲት ካርዶችና የውጭ ምንዛሬ ላይ ያለውን ጥገኝነት ለመቀነስ በማሰብ ነው ተብሏል። ይህ እርምጃ በአለም አቀፍ የክፍያ ስርዓት ምክንያት ለአፍሪካውያን ትልቅ እንቅፋት የነበረውን ችግር ለመቅረፍ ያለመ መሆኑም ተሰምቷል።

ይህም ማለት አሁን ኢትዮጵያውያን በአሊ ኤክስፕረስ ላይ የተለያዩ እቃዎችን ሲገዙ በብር ገንዘባቸው ክፍያ መፈጸም ይችላሉ። አሊባባ ይህን ለማሳካት በኢትዮጵያ ካሉ የዲጂታል ክፍያ አገልግሎት ሰጪዎች ጋር ትብብር መፍጠሩን አስታውቋል። #Capital

@PatternFin

ኢትዮጵያ በዚህ ወር መጨረሻ የዓለም ንግድ ድርጅት አባልነት ለማግኘት ወሳኝ ድርድር  ልታደርግ ነዉ

ኢትዮጵያ የዓለም ንግድ ድርጅት  አባል ለመሆን ያላት የረዥም ጊዜ ምኞት ወደ ፍጻሜው እየተቃረበ ሲሆን፣ ቀጣዩ የድርድር ዙር በየካቲት መጨረሻ ወይም በመጋቢት መጀመሪያ ላይ ይካሄዳል።

ኢትዮጵያ ለመጀመሪያ ጊዜ የዓለም ንግድ ድርጅት አባልነትን እኤአ በ2003 ያቀረበች ሲሆን፣ ከዚያን ጊዜ ጀምሮ የድርጅቱን ጥብቅ መስፈርቶች ለማሟላት ሰፊ የኢኮኖሚ እና የንግድ ፖሊሲ ማሻሻያዎችን አድርጋለች።

በጄኔቫ የሚካሄደው የድርድር ዙር የገበያ ተደራሽነት ግዴታዎችን እና የሀገር ውስጥ የቁጥጥር ማስተካከያዎችን ጨምሮ ዋና ዋና የውድድር ኮንትራቶችን በማጠናቀቅ ላይ ያተኩራል ተብሏል።

የንግድ ባለሙያዎች እና የመንግስት ባለስልጣናት ሂደቱ ተስፋ ሰጪ እንደሆነ ገልጸዋል። የንግድ እና ቀጠናዊ ትስስር ሚኒስትር ዴኤታ ወ/ሮ ያስሚን ወሃብረቢ እንደገለጹት፣ "ይህ የዓለም ንግድ ድርጅት አባልነት ለኢትዮጵያ ኢኮኖሚዋን ለማጠናከር እና የውጭ ኢንቨስትመንትን ለመሳብ ታሪካዊ እድል ነው።