Prez Akufo-Addo blames Rating Agencies for Ghana’s economic woes
President Nana Akufo-Addo of Ghana has attributed the country’s ongoing economic difficulties, in part, to the downgrading actions taken by various rating agencies. Speaking at the 30th Annual Meeting of the African Export-Import Bank (Afreximbank) in Accra, President Akufo-Addo highlighted the detrimental impact of these downgrades, which he claimed have effectively cut Ghana off from the capital market, exacerbating the nation’s liquidity crisis and turning it into a solvency crisis.
Expressing his frustration, President Akufo-Addo stated, “I can confidently say as the AU champion for financial institutions and a leader of a country which recently had to deal with one of the most difficult periods in its post-Independence history; difficulties which were exacerbated by the reckless behavior of rating agencies that engaged in procyclical downgrades; shutting Ghana out of the capital market and turning a liquidity crisis into a solvency crisis.”
The president further praised Afreximbank for its countercyclical response mechanism, which provided timely support to help Ghana navigate the macroeconomic management challenges arising from the Ukraine crisis and Russia’s aggression. Akufo-Addo emphasized the crucial role played by Afreximbank in stabilizing Ghana’s economy during a tumultuous period.
The 30th Annual General Meetings of Afreximbank, which commenced on June 18 and will conclude on June 21, are being held in Accra to commemorate the bank’s 30th anniversary. Speakers at the event emphasized the importance of boosting intra-African trade and integration in the face of challenges posed by the global COVID-19 pandemic and other global conflicts.
Afreximbank, a Pan-African multilateral financial institution, is mandated to finance and promote intra- and extra-African trade. Over its three decades of operation, the bank has consistently deployed innovative financial structures to provide financing solutions that support Africa’s trade transformation, foster industrialization, and accelerate intra-regional trade, thereby driving economic expansion across the continent.
The institution has been a staunch supporter of the African Continental Free Trade Agreement (AfCFTA) and has introduced the Pan-African Payment and Settlement System (PAPSS), adopted by the African Union (AU) as the payment and settlement platform for implementing the AfCFTA. In collaboration with the AfCFTA Secretariat and the AU, Afreximbank is also establishing a $10 billion Adjustment Fund aimed at facilitating effective participation in the AfCFTA by member countries.
At the end of 2022, Afreximbank’s total assets and guarantees exceeded $31 billion, with shareholder funds amounting to $5.2 billion. The bank has disbursed over $86 billion between 2016 and 2022, cementing its position as a major player in Africa’s financial landscape. Notably, Afreximbank has achieved investment-grade ratings from internationally recognized rating agencies such as GCR (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-), and Fitch (BBB). The institution has evolved into a group entity, comprising the bank itself, its impact fund subsidiary known as the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure.
