Courtesy Visit by Agusto & Co. to the National Pensions Regulatory Authority
A delegation from Agusto & Co., a leading credit rating agency in Africa, paid a courtesy call on the National Pensions Regulatory Authority (NPRA) as part of efforts to explore opportunities for collaboration in strengthening Ghana’s capital market. The delegation was led by the Group Managing Director, Mrs. Yinka Adelekan.
Mrs. Adelekan explained that the purpose of the visit was to explore avenues for collaboration with the regulator to help deepen this emerging market for long-term financing. She emphasised that partnerships between regulators and rating agencies can help make debt instruments more attractive, encourage companies to utilise capital market financing, and mobilise private capital for critical sectors of the economy such as infrastructure, healthcare, and transport.
She highlighted the critical role of credit rating in supporting the development of capital markets and enabling organisations to access sustainable financing. She explained that credit ratings help institutions plan effectively and reduce excessive dependence on bank financing. Through the rating process, organisations can access long-term funding, thereby improving financial planning and stability.
Drawing from experiences in other markets, particularly Nigeria, Mrs. Adelekan mentioned that fund managers are required to obtain credit ratings before they can manage pension assets, a measure that strengthens transparency and accountability within the pension ecosystem. She also emphasised that strong corporate governance structures remain one of the key considerations in the rating process.
The Deputy Chief Executive Officer of NPRA, Mr. Victor Azuma Mejida affirmed the importance of the credit rating and underscored the need to address the Ghanaian market’s over-reliance on short-term financial instruments. He stressed that sustainable economic growth requires a shift toward long-term investments supported by the capital market.
He further noted that excessive dependence on the banking sector for financing places significant strain on companies, particularly when operational costs are high and where foreign exchange exposures such as imports—affects their ability to recover costs. According to him, the growing pension fund assets present a valuable opportunity to support long-term financing if properly leveraged.
Mr. Mejida welcomed the insights that rating agencies operating across multiple markets can bring to Ghana, noting that such expertise could contribute to strengthening the country’s investment ecosystem and expanding opportunities for pension funds to support productive sectors of the economy.
About Agusto & Co
Agusto & Co. is a Pan-African credit rating agency and a leading provider of industry research and knowledge in Nigeria and Sub-Saharan Africa.
Since inception in 1992, Agusto & Co has assigned over 3,000 ratings to banks, corporates, finance & leasing companies, funds & investment managers, insurance companies, microfinance banks, mortgage institutions and securities & investment firms.
They hold credit rating licences that allows for their operations in Nigeria, Kenya, Rwanda and Ghana.