AU TO LAUNCH AFRICAN CREDIT RATING AGENCY

The African Union is set to launch the African Credit Rating Agency on October 7, 2026, in Port Louis, Mauritius, in a move aimed at giving African economies greater control over how their creditworthiness is assessed.

The agency, known as AfCRA, is expected to provide an African perspective on the financial risks and economic conditions of sovereign and corporate entities across the continent.

The initiative is driven by concerns among African governments that international credit ratings do not always reflect the economic realities, resilience and growth potential of African countries.

The AU said AfCRA would provide context-driven credit opinions and could help address the risk premiums that African countries face when seeking funding in international markets.

The agency is expected to serve as an alternative to major global rating firms such as Fitch Ratings, Moody’s Ratings and S&P Global Ratings.

Its establishment is also part of broader efforts to strengthen Africa’s financial sovereignty and improve the continent’s position in the global financial system.

The African Peer Review Mechanism has played a key role in advancing the initiative, which has been under development for several years.

AfCRA is expected to focus significantly on local-currency debt instruments while maintaining independence from African governments to protect its credibility.

The AU said the new agency would help African countries develop a more accurate financial narrative and potentially support efforts to reduce borrowing costs across the continent.