Addis Chamber and Sectoral Associations have signed an agreement with UAE-based ICRA Rating LLC to introduce credit rating services in Ethiopia.
The partnership is the result of seven months of negotiations between the two organizations. Through this collaboration, Addis Chamber will leverage ICRA's expertise to evaluate the financial profiles of local companies seeking credit ratings.
Shibeshi Bettemariam, Secretary General of Addis Chamber, wrote on LinkedIn: “Credit Rating is a new service Addis Chamber will add to its portfolio, on top of the recently introduced business incubation and services of the institute of directors.”
Credit ratings are objective assessments of a company's financial background, exposures, and ability to take on risks. They aim to provide transparency to suppliers and investors dealing with corporate clients.
The launch of credit ratings in Ethiopia aims to foster higher standards of due diligence and transparency among private and public sector financial market participants.
It also aligns with Addis Chamber's goal of becoming a leading thought leadership platform on the country's capital markets. The organization will now oversee delivery of credit rating services in partnership with its UAE-based counterpart.