Nana Akufo-Addo, the President of Ghana, has accused credit rating agencies of "reckless downgrading" of the country's economy, which has contributed to its current economic difficulties.
Speaking at the 30th anniversary celebration of the AFIB in Accra, he stressed that such ratings put "unfair pressure" on African economies.
He added that Ghana had recently gone through one of the "most difficult periods in its post-independent history" due to the irresponsible behavior of rating agencies, which had caused Ghana to be cut off from the capital market and had caused a liquidity crisis to become a solvency emergency.
The President also stressed the risks and costs of relying on external capital markets. In his keynote speech, he stressed the need for African countries to build their own domestic financial institutions to mobilize domestic resources and support private sector development.
He outlined the downsides of relying on foreign capital, including financial leakage, high borrowing costs, and interest payments.
He said reliance on foreign capital undermines the development of domestic financial institutions, hindering the growth of African economies.
At the end of his speech, he suggested some steps that African leaders should take to tackle the current economic difficulties. He stressed the need for capitalization and effective cooperation with the African Union, and stressed that without strong financial institutions, the country would not be able to progress. He said, "Over the years, we have learned that relying on external capital is both dangerous and expensive. It has led to huge financial losses, high borrowing costs and interest payments, and has hindered the development of our financial institution's domestic resource mobilization and the private sector's development.
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