The new agency will assess African governments, businesses and institutions using data and expertise rooted in the continent’s economic realities.
The African Union has officially launched the Africa Credit Rating Agency, AfCRA, in Mauritius, creating a continent-focused institution to provide independent assessments of the creditworthiness of African governments, companies and other institutions.
The agency was launched on Wednesday, October 7, in Port Louis, Mauritius, after years of efforts to establish an African institution capable of providing credit assessments that take greater account of the continent’s economic realities.
Presidential aide Dada Olusegun said President Bola Tinubu played a role in pushing the initiative, which he said had first been proposed in 2017.
“While the idea of having an African Credit Rating Agency was first proposed in 2017, recent advocacy and push by President Tinubu has now made it a reality,” Olusegun said in a post on X.
Tinubu has previously advocated for an African credit rating institution, including at the Africa CEO Forum in Kigali in May, according to the aide.
The African Union said its Assembly endorsed the creation of AfCRA in 2018, while the African Peer Review Mechanism subsequently supported efforts to develop the institution and its governance and methodology.
What AfCRA will do
AfCRA is expected to rate African sovereigns, sub-sovereigns, companies and public and private institutions.
The AU said the agency will provide an additional source of credit assessment based on African data, expertise and economic conditions, while complementing existing international credit rating agencies rather than replacing them.
The agency is also expected to expand credit-rating coverage across the continent. According to the AU, only 32 of Africa’s 55 countries currently have ratings from the three major international agencies, leaving 23 without such coverage.
The AU said AfCRA is intended to help close information gaps, strengthen financial markets and improve investor understanding of African economies.
Its establishment comes amid long-running concerns among African policymakers that international ratings do not always adequately reflect local economic conditions and can contribute to higher borrowing costs.
At the launch, AU Commission Chairperson Mahmoud Ali Youssouf said AfCRA would contribute to strengthening Africa’s financial architecture and improving the continent’s ability to mobilise capital.
He stressed, however, that the agency must provide independent and technically rigorous assessments.
AfCRA, he said, was “not about seeking favourable ratings” but about ensuring credible and context-sensitive assessments while meeting international standards.
AfCRA headquartered in Mauritius
The agency is headquartered in Port Louis, with Mauritius selected because of its established financial services sector, regulatory framework and links to African and international markets.
Mauritius officials said the institution could help deepen African capital markets and strengthen the continent’s capacity to mobilise financing for infrastructure and other development priorities.
The African Union said AfCRA’s technical development involved the African Peer Review Mechanism and other partners, with its methodology designed to incorporate African economic data and expertise while remaining aligned with international standards.
The launch is part of a broader push by African institutions to strengthen the continent’s financial architecture and increase its influence over how African economies are assessed in global markets.
AfCRA is expected to begin operating as an additional source of credit intelligence for investors and other market participants, with its credibility ultimately depending on the independence, transparency and technical quality of its ratings.
