Associate Professor of Finance at Andrews University, Professor Williams Peprah, has added to the calls that Africa should establish its own rating agency.

According to him, Africa has the capacity to establish a credit rating agency to assign ratings to their respective credit or borrowings.

However, his concern is whether the respective countries will be able to establish a credit worthy agency to do a better analysis.

Speaking on JoyNews Desk, Professor Peprah, said Africa has good research and risk professionals who can do a thorough analysis of the financial and creditworthiness of the respective bonds that will be issued.

“I think the concern has been with the qualitative aspect that affects the ratings of African countries especially when it comes to the political risk angle. The qualitative aspect looks at five main elements. So if you ask me for my opinion on whether it is good for African countries to establish our own; yes, we are ready and I will support that kind of agenda to have an African ratings credit organisation”.

“What may happen is that we may have to align our rating or align ourselves with the international rating agencies. And then with the percentage attached to each of the rating elements, Africans may come out with their own rating elements”, he added.

Continuing, Professor Peprah said the African continent can learn from the experiences of the international rating agencies, adding, “If you visit these entities, they have experienced, well-qualified Africans already in these institutions.”

“We may tap into these institutions, bring some of them [African professionals] to Africa, and then they will bring in the African perspective in the ratings”, he continued.