African Union to launch continent's first credit rating agency
The new agency aims to give African borrowers fairer assessments and challenge the higher borrowing costs tied to low or missing ratings.
- The Africa Credit Ratings Agency , backed by the African Union after nearly a decade of talks, will launch in Mauritius to assess the creditworthiness of countries, businesses and institutions.
- Twenty-Three African countries lack any credit rating from traditional agencies, while standard models overlook Africa's huge informal sectors; African borrowers paid $9 per $100 borrowed in 2024 versus $4.70 in Asia and $6.50 in Latin America.
- Nigeria's President Bola Tinubu endorsed AfCRA last month, writing "Africa is not asking for favourable ratings" but "fair ratings, grounded in our fundamentals and in the reforms our economies are actually carrying out."
- AfCRA's founders pledge no government interference, yet analysts identify whether the agency will downgrade an African government as the critical credibility test; investor confidence hinges on proving "it is credible, not because it is African."
- If AfCRA succeeds in accurately assessing African creditworthiness by accounting for informal economies and domestic savings, it could reshape global capital markets and reduce the $9-per-$100 borrowing premium African nations currently face versus Asia and Latin America.
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96 Articles
Hardly any local analysts, no understanding of informal markets: the large credit rating agencies supposedly do not understand Africa. Therefore, there is now an African institute. This will have to convince the financial markets that it is independent.
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The African Union established the Africa Credit Rating Agency to provide better assessments for African economies. This initiative aims to address global rating agencies' perceived biases and shortcomings. Credit ratings for African nations currently suffer from a significant information gap compared to other regions. The new agency could enhance local capital markets by focusing on domestic debt markets and investments.
Africa Credit Rating Agency launches in Port Louis to fill African credit data gap
The Africa Credit Rating Agency (AfCRA) was officially launched in Port Louis on October 8, 2026. The new institution aims to establish independent regional expertise in credit risk assessment and shift how international investors analyze the economic indicators of African nations. As a First Executive Vice President of Afreximbank, Denis Dienya stated that AfCRA must maintain full independence and remain under the control of its African stakeho…
Can anyone break free from Western bankers? Africa is about to...
Countries on the continent could save up to $74.5 billion if sovereign ratings were based on less subjective assessments On October 7, the African Union officially launched the Africa Credit Rating Agency (AfCRA) in Mauritius, giving the continent its own institution for assessing African sovereigns, companies, and financial institutions. AfCRA is not intended to replace Moody's, S&P, or Fitch, but to introduce an African source of authority int…
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