African Union (AU) is set to officially launch the Africa Credit Rating Agency (AfCRA) on October 7 in Mauritius, marking a major step towards strengthening Africa’s financial independence and reshaping how the continent’s economies are assessed by global investors.
Gatekeepers News reports that AU said AfCRA is designed to provide independent, credible and context-driven credit assessments of African sovereigns and companies, amid longstanding concerns that international rating agencies do not adequately reflect the continent’s economic realities.
According to the AU, the agency will seek to address what it described as skewed risk perceptions that have contributed to African countries paying higher borrowing costs, or risk premiums, in international capital markets. AfCRA will be headquartered in Mauritius, which was selected as the host country in 2025.
Misheck Mutize, lead expert on credit ratings at the African Peer Review Mechanism (APRM), said the initiative followed a mandate from African finance ministers to support countries whose existing credit ratings do not adequately reflect their economic growth, socio-economic development and political progress.
The agency will also provide research and advisory services to governments, facilitate information exchange among financial-sector institutions and offer technical support to countries before, during and after the credit-rating process.
However, AfCRA is not intended to replace or compete directly with Moody’s, S&P Global Ratings and Fitch Ratings. Officials said it would instead provide an alternative assessment that complements the opinions of the three major international agencies.
The APRM has been tasked with operationalising the agency as a private-sector-driven, self-funded and self-sustaining institution, in line with decisions of the AU Executive Council.
President Bola Tinubu welcomed the planned launch, describing AfCRA as another step towards building African financial institutions capable of properly assessing the continent’s risks. He said Africa is not seeking favourable ratings but fair assessments based on its economic fundamentals and reforms.
The AU had earlier said the agency’s establishment was aimed at enhancing financial sovereignty, improving transparency and creating credit-rating frameworks that better reflect Africa’s unique socio-economic realities.
