Nairobi: African leaders meeting in Nairobi on Monday urged global financial institutions and investors to rethink how they assess risk in African economies, saying the continent is unfairly treated as a dangerous place for investment despite strong economic opportunities and growing markets.
The call came during the Africa Forward Summit, jointly hosted by Kenyan President William Ruto and French President Emmanuel Macron. The gathering brought together leaders from more than 30 African countries, senior officials from international financial organisations, business executives and development partners.
At the centre of discussions was the belief among many African governments that international lenders and credit rating agencies continue to place excessively high risk labels on African economies. Leaders argued that this approach increases borrowing costs for African nations and discourages foreign investors from supporting important development projects.
Kenya’s Foreign Minister Musalia Mudavadi said Africa has long suffered from outdated perceptions that paint the continent as unstable and financially unreliable. He explained that many African countries are forced to pay higher interest rates on loans than nations in other regions, even when their economic conditions are improving.
Mudavadi said global crises such as wars, inflation and economic instability are now affecting countries across Europe, Asia and the Middle East, yet African countries continue to receive harsher treatment from international financial markets.
Several leaders at the summit stressed that Africa has vast economic potential driven by a young population, expanding technology sectors, renewable energy projects and growing urban markets. They argued that investors should focus more on these opportunities instead of relying on old assumptions about conflict and insecurity.
A major issue discussed at the summit was the planned African credit ratings agency supported by the African Union. African leaders believe such an institution could provide fairer evaluations of African economies and reduce dependence on international rating firms such as Moody’s, Fitch and S and P Global Ratings.
Many African governments have accused global ratings agencies of exaggerating financial risks on the continent. According to officials attending the summit, these ratings often influence international investors and make it more expensive for African countries to access global financing.
The debate has become more intense in recent months after Afreximbank decided to end its relationship with Fitch Ratings over disagreements about how African financial risks were assessed. Supporters of an African ratings agency say the move highlights the need for the continent to create independent financial institutions that better understand local economies.
French President Emmanuel Macron used the summit to promote what he described as a renewed partnership between France and African nations. France has been trying to rebuild its relationships across Africa after losing influence in several West African countries where military governments reduced cooperation with Paris and expelled French troops.
Analysts say holding the summit in Kenya is politically important because it signals France’s effort to strengthen ties beyond its traditional French speaking partners in Africa. Kenya is considered one of East Africa’s largest economies and an important regional diplomatic centre.
Business and investment partnerships were also announced during the meeting. French shipping company CMA CGM revealed plans to invest about 823 million dollars in Kenya’s Mombasa port to improve trade and transport links in the region.
Discussions at the summit also focused on clean energy, digital technology, artificial intelligence, infrastructure and manufacturing. African leaders said attracting long term investment in these sectors would help create jobs and reduce poverty across the continent.
Business leaders including Nigerian industrialist Aliko Dangote attended the summit and encouraged stronger cooperation between African governments and international investors.
The summit comes at a difficult economic time for many African countries that are struggling with rising debt, currency pressure and higher fuel prices linked to global tensions. Leaders said reforming the international financial system would allow African nations to access affordable financing and support sustainable economic growth for the future.