Latest news with #ClaverGatete
The Star
24-05-2025
- Business
- The Star
UNECA chief urges African brands to boost global visibility
ADDIS ABABA, May 24 (Xinhua) -- Executive Secretary of the United Nations Economic Commission for Africa (UNECA) Claver Gatete has called on African countries and businesses to intensify efforts to enhance the global visibility and competitiveness of African brands. Gatete made the call on Friday during the unveiling of the "Brand Africa 100: Africa's Best Brands 2025" ranking in Addis Ababa, Ethiopia's capital, which highlighted the continent's most admired brands. With Africa's rising middle class propelling the continent's consumer market, which is projected to surpass 2.2 trillion U.S. dollars by 2030, Africa's branding story is equally diverse and dynamic across the continent, Gatete said. He cited examples of African innovation and value addition: Ghana and Cote d'Ivoire in cocoa processing, Kenya in mobile banking, Nigeria's creative industries, Rwanda's green transformation initiatives, and South Africa's industrial base. Gatete underscored the continent's demographic advantage, with more than 70 percent of its population under the age of 35, calling it "far-reaching implications" for sustainable development. Despite this potential, he acknowledged that only a handful of African brands have achieved meaningful global visibility, a challenge that must be addressed through coordinated action. To address the challenge, Gatete proposed five strategic pathways to integrate authentic African brands into the continent's broader development agenda and enhance their international competitiveness. "It is imperative that we keep in mind that what defines a brand is not merely a logo or a slogan. An authentic African brand must straddle the embodiment of Africa's stories, culture, and aspirations," he said. Jointly organized by Brand Africa, UNECA, and African Business, the Africa's Best Brands 2025 ranking was determined through a comprehensive survey conducted in 31 countries.
IOL News
02-05-2025
- Business
- IOL News
African nations seek fair credit ratings at pivotal Washington dialogue
Claver Gatete, executive secretary of the ECA, expressed concern over Africa's 'financing paradox'—with a collective GDP exceeding $3 trillion yet only two nations holding investment-grade ratings. African countries have started a dialogue with major credit ratings agencies seeking a fair and just systematic ratings to their sovereign credit statuses in a bid to reshape the continent's financial landscape. This comes afte a pivotal dialogue convened in Washington, uniting African institutions and global credit rating agencies to explore the creation of a fair and inclusive credit rating ecosystem tailored for Africa amid rising market volatility and sovereign defaults. This engagement, which unfolded on the sidelines of the 2025 IMF–World Bank Spring Meetings, has marked a significant step toward addressing the myriad challenges faced by African economies in the global financial landscape. With South Africa chairing the G20 and the African Union expecting permanent status in 2025, the urgency for an African-led credit rating solution is more pressing than ever. The outcomes of this dialogue herald an opportunity not only for reform but to ensure that Africa's financial strategies more effectively meet its developmental aspirations. With over 30 African countries currently assessed by sovereign credit ratings, the influence of global rating agencies on debt sustainability and access to financial markets cannot be overstated. Organised by a consortium including the African Peer Review Mechanism (APRM), the United Nations Development Programme (UNDP), the United Nations Economic Commission for Africa (ECA), AfriCatalyst, and the African Center for Economic Transformation (ACET), the dialogue featured leading representatives from credit rating giants like Moody's, S&P, and Bank of America. Claver Gatete, executive secretary of the ECA, expressed concern over Africa's 'financing paradox'—with a collective GDP exceeding $3 trillion yet only two nations holding investment-grade ratings. 'Ultimately, a healthy credit rating ecosystem goes beyond evaluating risk – it becomes a platform for mobilizing capital, improving creditworthiness, and supporting Africa's broader development goals,' Gatete said. Providing insight into the complexity of credit ratings, Raymond Gilpin, chief economist for UNDP Africa, stressed the necessity for a development-centric approach that enhances data systems and cultivates stronger relationships between African governments and the 'big three' rating agencies. 'We must rethink how creditworthiness is defined and measured,' he said. 'At UNDP, we believe a development-centric approach is essential to supporting governments in strengthening institutions, improving data systems, and engaging effectively with credit rating agencies to reshape the narrative around Africa's creditworthiness.' Challenges plaguing African economies were laid bare by experts Misheck Mutize and Zuzana Schwidrowski, who identified data gaps, methodological opacities, and the lack of engagement between African administrations and credit rating firms as barriers to fair assessments. They proposed that empowering African governments with tools to contend with inaccurate ratings is crucial and discussed the establishment of an African Credit Rating Agency (AfCRA) to serve as a complement to existing international frameworks. A robust discussions arose regarding potential solutions, spearheaded by Roberto Sifon-Arevelo of S&P Global Ratings, Jorge Valez from Moody's Ratings, and Bank of America's Tatonga Rusike. They were united in a vision to tackle long-standing perceptions of risk by enhancing transparency and collaborating with local banks and investors to better understand rating methodologies. They further emphasized that while sovereign credit ratings were not the sole determinant of investor decisions, they exerted significant influence over borrowing costs, market confidence, and access to capital, highlighting the intricate relationship between perceptions and actual economic conditions. Mavis Owusu-Gyamfi, President and CEO of ACET, echoed the sentiment of urgency, pointing to the ongoing challenges that African governments face in managing costs and access to capital. 'Given the ongoing stress in African governments related to both cost of capital and access to capital it is critical to ensure that credit ratings reflect the many different African contexts. This initiative is an important step in that regard - particularly engaging the credit rating agencies,' she said. In a bid to enhance representation within global financial frameworks, Mutize clarified that the e Africa Credit Rating Agency (AfCRA) would not merely provide favourable ratings for African entities but would contribute to a diversity of assessments of African sovereigns, corporates, and sub-sovereigns. 'Our priority is to build a credible, independent, and sustainable institution that plays a vital role in developing domestic debt markets and rebalancing Africa's position within the evolving global financial architecture,' Mutize said. As the dialogue concluded, Daouda Sembene, CEO of AfriCatalyst, emphasised the critical need for collaboration among African institutions to achieve the reform objectives set out. 'AfriCatalyst is proud to be at the heart of this critical dialogue, building on the foundation of our Credit Ratings Initiative with UNDP. We are optimistic that through stronger collaboration between African institutions and global rating agencies, we can foster a more accurate, robust, and representative credit rating ecosystem—one that empowers African nations and promotes sustainable growth,' said Daouda. BUSINESS REPORT
Zawya
30-04-2025
- Business
- Zawya
Experts Convene in Washington to Advance Dialogue on an African-Led Credit Rating Ecosystem
With more than 30 African countries subject to sovereign credit ratings, the decisions of global rating agencies significantly impact debt sustainability and access to international financial markets. At a high-level dialogue held on the sidelines of the 2025 IMF–World Bank Spring Meetings, African institutions and global credit rating agencies reaffirmed their commitment to developing a fair, transparent, and inclusive credit rating ecosystem for Africa. Organized by the African Union's African Peer Review Mechanism (APRM), the United Nations Development Programme (UNDP), the United Nations Economic Commission for Africa (UNECA), AfriCatalyst, and the African Center for Economic Transformation (ACET), and hosted at the Open Society Foundations, the dialogue brought together senior representatives from Moody's, S&P, and Bank of America for a candid discussion on financing solutions for African countries. Against a backdrop of rising market volatility, sovereign defaults and constrained fiscal space, the dialogue aimed to address urgent reforms in Africa's credit rating framework. Speakers identified structural issues such as data gaps, methodological opacity, and under-engagement between African governments and the 'big three' credit rating agencies (Moody's, S&P, and Fitch), as barriers to accurate ratings. Amb. Claver Gatete, Executive Secretary of UNECA, acknowledged Africa's financing paradox—a combined GDP of over $3 trillion, yet only two countries rated investment grade—and underscored the urgent need for reform. 'Ultimately, a healthy credit rating ecosystem goes beyond evaluating risk – it becomes a platform for mobilizing capital, improving creditworthiness, and supporting Africa's broader development goals,' he added. 'We must rethink how creditworthiness is defined and measured,' said Dr. Raymond Gilpin, Chief Economist, UNDP Africa speaking on behalf of Ms. Ahunna Eziakonwa, UNDP Regional Director for Africa. 'At UNDP, we believe a development-centric approach is essential to supporting governments in strengthening institutions, improving data systems, and engaging effectively with credit rating agencies to reshape the narrative around Africa's creditworthiness.' African economies face mounting credit rating challenges, including perceptions of bias, lack of transparency and inconsistencies in rating methodologies. Dr. Misheck Mutize, Lead Credit Rating Expert at APRM, and Dr. Zuzana Schwidrowski, Director of Macroeconomics, Governance and Finance at UNECA, proposed solutions to addressing the capacity of African governments to respond to inaccurate or unfair credit ratings and steps toward creating an African Credit Rating Agency that complements and expands existing credit ratings coverage globally. Mr. Roberto Sifon-Arevelo, Managing Director at S&P Global Ratings, Mr. Jorge Valez, Senior Vice President at Moody's Ratings, and Dr. Tatonga Rusike, Chief Economist for Africa at Bank of America, outlined opportunities to remedy longstanding risk perception issues and working together with banks and investors to build capacity and a better understanding of rating methodologies to address transparency. They further emphasized that while sovereign credit ratings are not the sole determinant of investor decisions, they exert significant influence over borrowing costs, market confidence, and access to capital. "Given the ongoing stress in African governments related to both cost of capital and access to capital it is critical to ensure that credit ratings reflect the many different African contexts. This initiative is an important step in that regard - particularly engaging the credit rating agencies," shared Ms. Mavis Owusu-Gyamfi, President and CEO of ACET. 'The Africa Credit Rating Agency (AfCRA) is not being established to issue favourable ratings for African entities, but rather to contribute to a diversity of rating opinions that support more accurate assessments of African sovereigns, corporates, and sub-sovereigns,' expressed Dr. Mutize. 'Our priority is to build a credible, independent, and sustainable institution that plays a vital role in developing domestic debt markets and rebalancing Africa's position within the evolving global financial architecture.' In his closing remarks AfriCatalyst's CEO Dr. Daouda Sembene stressed the urgent need for collaboration among African institutions. 'AfriCatalyst is proud to be at the heart of this critical dialogue, building on the foundation of our Credit Ratings Initiative with UNDP. We are optimistic that through stronger collaboration between African institutions and global rating agencies, we can foster a more accurate, robust, and representative credit rating ecosystem—one that empowers African nations and promotes sustainable growth.' said Daouda. Key messages included the need for: transparent and regular engagement between rating agencies, investors, and African governments; stronger institutional narratives that reflect the continent's resilience and reform efforts; and local capacity-building and collaboration, particularly through the proposed African Credit Rating Agency, which aims to provide credible, contextual alternatives to global ratings. As South Africa chairs the G20 and the African Union assumes permanent membership in 2025, the call for an African-led credit rating solution takes on added urgency. The outcomes of this dialogue will contribute to ongoing efforts to reform the global financial architecture and ensure Africa's capital works better for Africa's development. Distributed by APO Group on behalf of AfriCatalyst. Media Contacts: Bineta Pouye bpouye@ Michelle Mendi Muita Ejigayhu Tefera Jean-Marc Kilolo Belinda Ayamgha bayamgha@
Russia Today
13-02-2025
- Business
- Russia Today
Global financial system outdated and unjust
The head of the UN's Economic Commission for Africa, Claver Gatete, has described the current global financial infrastructure as outdated and unjust and called for reforms to address the economic disparities affecting Africa. Gatete, who hails from Rwanda, made the remarks during the 46th Ordinary Session of the African Union's Executive Council in Addis Ababa on Wednesday. 'The current global financial architecture is outdated, inequitable and unjust and must be reformed to be fit for purpose. We must advocate for debt restructuring that allows African nations to invest in their people and development instead of paying exorbitant interest rates,' the executive secretary noted. Gatete pointed out that despite Africa possessing 30% of the world's mineral reserves, including 40% of its gold and up to 90% of its chromium and platinum, the continent accounts for less than 3% of global trade and only 1% of global manufacturing output. He also noted that in 2023, intra-African trade stood at just 16%, compared to intra-European trade at 68%. Gatete emphasized that 'these disparities are not due to a lack of economic potential but to entrenched structural barriers that keep Africa in a cycle of economic dependency.' READ MORE: Here's what NATO really fears in Africa The UN official highlighted the injustice in Africa's representation in international financial institutions, stating that the entire continent, with its 54 nations, has an International Monetary Fund (IMF) shareholding equal to that of Germany. Gatete also addressed the issue of Africa's credit ratings, noting that only two African countries – Botswana and Mauritius – hold investment-grade ratings, 'while others, despite sound economic fundamentals, are burdened with high-risk labels.' He further pointed out that although Africa has contributed the least to climate change, it suffers the most from its effects, with climate change costing Africa an estimated up to 5% of GDP. To address these issues, Gatete proposed a number of areas for action, including reforming the current global financial architecture, restructuring debt, and reforms to international financial institutions to ensure that Africa has a stronger voice in shaping global economic policies. He also stressed the importance of creating an African-led credit rating agency to provide fair evaluations that accurately represent the continent's economic realities. READ MORE: Africa will have permanent Security Council seats – UN chief Last August, UN Secretary-General Antonio Guterres called for reforms to the Security Council, calling its current structure outdated. He stated that 'Africa is under-represented in global governance structures – from the Security Council to international financial institutions – but over-represented in the very challenges these structures are designed to address. Conflicts, emergencies, and geopolitical divisions have an outsized impact on African countries.'
