African Union launches AfCRA / New agency aims to offer an alternative to major global rating agencies

The African Union is launching the continent’s first credit rating agency, the Africa Credit Rating Agency (AfCRA), on Wednesday in Port Louis, the capital of Mauritius. The initiative aims to offer an alternative to S&P Global Ratings, Moody’s and Fitch and improve African countries’ access to capital markets, at a time when public debt is placing increasing pressure on economies across the region.

The project, which will be headquartered in Mauritius, has been in preparation for nearly a decade, and African leaders approved the agency’s establishment in 2018. According to the African Union, AfCRA will assess countries, financial institutions and private companies, operating independently and being funded through shareholder capital and its own revenues.

African leaders have long criticized Western agencies, accusing them of overstating the risks of the continent’s economies and rapidly downgrading them during periods of crisis. International agencies reject the accusations and say they apply the same methodologies worldwide.

The African Union says Africa’s external debt-servicing costs rose from $61 billion in 2010 to $163 billion in 2024. The new agency is expected to expand rating coverage, as 23 African economies are not assessed by the three major agencies.