President Nana Addo Dankwa Akufo-Addo has taken a swipe at rating agencies for their “reckless” downgrades of African economies during the COVID-19 pandemic and the Russia-Ukraine conflict.
He noted that these downgrades have led to these countries especially Ghana being shut out of the international capital market.
Speaking at the 30th Africa Export and Import Bank annual meetings, President Akufo-Addo stated that these downgrades have led to the deepening of the problems of African countries.
“I can comfortably and convincingly say this as the AU champion for African financial institutions and leader of a country, which recently had to deal with one of the most difficult periods in his post-independence history, difficulties which were exacerbated by the reckless behaviour of rating agencies that engaged in pro-cyclical downgrades shutting Ghana out of capital markets and turning it liquidity crisis into a solvency crisis.
“The country which had become the favourite child of bondholders, and had successfully gone to market at the height of the pre-Covid downturn was suddenly shut out of international capital markets,” he said.
The President lauded the Afrexim Bank for its contributions to Africa’s growth and problems.
“Afreximbank under its counter-cyclical response mechanism provided timely support to help Ghana navigate the macroeconomic management challenges worsened by Russia’s war of aggression in Ukraine in an orderly manner when suddenly, we realized we were alone,” he said.
President Nana Addo Dankwa Akufo-Addo