Africa Credit Rating Conference 2024




Africa Credit Rating Conference held in Nairobi on 28th and 29th October 2024

The main speakers were Mr Ugas Mohamed - Chairman CMA.                                                      Mr Sam Omukoko - Founder, Metropol Corporation.                                                             Dr Hosea Kili - CPF Financial Services.             Mr Abubakar Hassan - PS MITI

Credit Rating is an independent assessment of the ability of a Corporation or a Government to repay a debt. They are then used by investors and lenders who want to know the levels of risk involved if they chip in their finances. We should have more local ratings so we can reduce our reliance on international credit ratings. This is because ratings in local currency will be more realistic than ratings in international currency. Local ratings favor the growth of local bond markets. Local ratings interact directly with public finance policies. 

Benefits of having more credit agencies. Prospective investors and lenders will be more confident with investing within the local economy.                                                  Maintaining a stable credit rating assists a country in sustainable development. An estimate of the level of risk involved in lending money to an entity creates a stable business environmen. 

The increased regulation of credit agencies will increase their reliability. We have a situation whereby Capital Markets Authority is willing to work more closely with the relevant stakeholders. 

More technological innovations to credit ratings: Embracing Artificial Intelligence will lead to increased consumer engagements when the AI processes to get faster results are explained to the client.                                                             High frequency data. This leads to better decision making. For people with little or no credit history, alternative data sources will be helpful. Faster data updates enables lenders to make more timely decisions therefore providing a better customer experience.                    Broader role of data analytics professionals. As the volume of data increases, D & A professionals will have more influence in the role of credit risk management. 



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