The Tyranny of International Credit Rating Agencies (ICRAs)

This chapter focuses on the biases and contradictions associated with the operations of the international credit rating agencies in Africa. It argues that the Big Three rating agencies, namely, Fitch Investment, Moody’s, and Standard & Poor’s are not neutral arbiters of financial, political, and economic risks on the continent as they claim to be. On the contrary, the three are part of the global financial infrastructure that is responsible for the exploitation and marginalisation of the African countries in the global economy. Their bias qualifies them as enablers of financial imperialism and sustainers of international financial subordination (IFS) rather than professional bodies that promote investment and trade in Africa. For Moyo, the rating agencies are driven by the global elite whose interests are well-served when Africa remains the Lilliputian of the world. He concludes this chapter by stressing that the African Union (AU) should lead the process of establishing a reputable Pan-African Credit Rating Agency that will professionally serve the interest of African economies and the rest of the Global South clients that are currently short-changed by imperial rating agencies.