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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21 Articles
Today, the African Union launched the first credit rating agency on the African continent, with the aim of providing an alternative to the major global credit rating agencies, in view of the increasing debt burden facing a number of African economies.
Today, Wednesday, the African Union is launching the first credit rating agency on the continent, seeking to provide an alternative to the "Great Three" global rating agencies amid the debt burden of many African economies.
AfCRA launches today, but credibility questions threaten Africa’s rating revolution
Africa’s long-awaited continental credit rating agency launches in Mauritius today, marking a major step in the continent’s effort to challenge read more AfCRA launches today, but credibility questions threaten Africa’s rating revolution
Africa launches own credit agency in bid for cheaper borrowing
The Africa Credit Ratings Agency (AfCRA), backed by the African Union after nearly a decade of talks, will judge the creditworthiness of countries, businesses and institutions. The Indian Ocean island of Mauritius was chosen as the agency's home, partly due to its established financial services industry. It aims to offer an alternative viewpoint to the "big three" global credit ratings -- Fitch, Moody's and S&P -- which have been accused in the…
African Union to launch continent's first credit rating agency
The African Union will launch the continent's first credit rating agency on Wednesday, seeking to provide an alternative to the "big three" global ratings agencies as debt burdens weigh on many African economies.
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