**”Fatshimetrie**: Major rating agencies influence risk assessment in Africa
The three giants of the ratings industry, Moody’s, S&P Global and Fitch, wield considerable influence over how creditors assess Africa’s risk profile. Their assessments have a direct impact on investment and lending decisions, thereby affecting African countries’ access to international capital.
Africa, as a developing continent, relies heavily on foreign investment to finance its infrastructure projects and drive its economic growth. The ratings assigned by these agencies are crucial in determining the confidence of investors and lenders in the economic and political stability of African countries.
However, it is important to note that criticism has been raised regarding the relevance and impartiality of these agencies, particularly in relation to the assessment of developing countries. Some believe that the criteria used by these agencies are sometimes unsuitable for the economic and social reality of Africa, which can lead to unfair or biased ratings.
Additionally, the dominance of the Big Three in the rating market creates a certain level of dependence of investors and business partners on them. African countries sometimes find themselves in a situation where they are forced to comply with the expectations of rating agencies to maintain their access to international financial markets.
To overcome these challenges, some experts are calling for a diversification of the rating landscape by encouraging the emergence of new independent and regional agencies. This would allow a more nuanced assessment and consideration of the specificities of African economies, thus contributing to a fairer and more balanced assessment of risk on the continent.
Ultimately, the influence of rating agencies on risk assessment in Africa is undeniable. It is crucial to remain vigilant about their role and impact, while exploring ways to ensure fair and transparent rating for African countries.”