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Posted by News Service | Oct 9, 2026 | Special Focus
The African Union (AU) this week officially launched Africa’s first indigenous credit rating firm, the Africa Credit Rating Agency (AfCRA).
Headquartered in Port Louis, Mauritius, AfCRA is designed to expand market intelligence, close data asymmetries, support better-informed investment decisions and strengthen Africa’s voice in global financial governance.
The AU underscored that the agency is a private sector-driven, self-funded and independent entity where governments cannot own shares to ensure absolute freedom from political influence. Furthermore, while the African Peer Review Mechanism (APRM) oversaw AfCRA’s establishment, the agency will now operate autonomously.
Chairperson of the AU Commission, H.E. Mahmoud Ali Youssouf, noted that the agency will pursue four major objectives. First, strengthen African capacity and expertise; second, help better understand the potential of African economies; third, assess objectively the risks related to African economies; and fourth, contribute to the work of institutions that shape the future of capital markets.
The AU further emphasised the significance of this launch, particularly at a time when Africa’s external debt service rose from US$61 billion in 2010 to US$163 billion in 2024, with interest payments exceeding public spending on health or education in most countries. The AfCRA serves to reduce such burdens by improving investor confidence and market transparency.
Ratings will cover African sovereigns, sub-sovereigns, corporates and public and private institutions, and may also extend to non-African entities subject to management decisions. According to the Union, only 32 of Africa’s 55 states carry ratings from S&P Global Ratings, Moody’s Ratings and Fitch Ratings, with 23 unrated. AfCRA will expand coverage to open capital markets for more African issuers.
Youssouf noted that while the launch represents a milestone in the economic history of the continent, a rating agency will not significantly reduce the cost of capital in the near future.
“There is a need for a more holistic reform on global markets. Our member countries and our financial institutions bear a specific responsibility to advocate for those reforms. In Agenda 2063, African leaders envisioned a peaceful, integrated and prosperous Africa,” he stated.
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