The Africa Credit Rating Agency (AfCRA) has been launched by the African Union(AU) in Mauritius, marking a significant step in Africa’s attempt to develop a more locally grounded assessment of sovereign and corporate credit risk.

The initiative follows years of criticism from African governments and institutions over the methodologies and sovereign-rating decisions of Moody’s, S&P and Fitch, particularly during periods of economic stress. Ghana, for example, challenged Moody’s 2022 downgrade, while African officials criticised the wave of downgrades across the continent during the COVID-19 period.

More recently, Afreximbank terminated its relationship with Fitch in January 2026, following disagreements over the agency’s assessment of its creditworthiness.

AfCRA intends to rate governments, financial institutions and companies, with the AU highlighting the 23 African economies that currently lack coverage from the three major international rating agencies.

The issue is significant because the cost of credit is not merely an academic matter. Africa’s annual external debt-service burden has risen from about US$61 billion in 2010 to US$163 billion in 2024. How African risk is perceived can therefore directly influence borrowing costs, investor appetite and access to international capital.

But AfCRA’s real test will not be whether it produces more favourable ratings. It will be whether it produces credible ratings.

For the agency to gain investor confidence, independence, transparency, methodological discipline and internationally recognised standards will matter more than simply having an African perspective.

The opportunity is therefore bigger than creating an alternative to Moody’s, S&P or Fitch. It is about building an African credit-information institution whose assessments international investors can trust—even when the rating is unfavourable to an African government or company.

Bottom line: AfCRA could help address gaps and perceived biases in the assessment of African credit risk, but its long-term influence will ultimately be determined by the credibility and independence of its ratings—not by where the agency is headquartered. African Union to launch continent’s first credit rating agency in Mauritius

The African Union says it wants the Africa Credit Rating Agency to provide an alternative to the leading global ratings agencies.

The ‌opening of the Africa Credit Rating Agency (AfCRA), which will be based in Port Louis, Mauritius, comes eight years after the African Union (AU) first endorsed its creation.

“AfCRA complements existing global credit rating agencies by offering a perspective rooted in African data, expertise and realities,” the AU said in a statement.

Africa’s beef with Western Rating Agencies

African leaders and finance experts have previously accused Western ratings agencies such as S&P Global Ratings, Moody’s Ratings and Fitch Ratings of failing to fairly assess the risk of lending to African countries and of moving too quickly ‌to downgrade them during crises such as conflicts and pandemics. The agencies reject that criticism, saying they apply the same methodologies globally.

A 2024 Reuters investigation into Africa’s debt crisis found no evidence of systemic bias ‌in the sovereign ratings assigned by the three major global credit rating agencies.

AfCRA, which will rate sovereign borrowers, financial institutions and private companies, will operate independently and be funded through shareholder capital and its operations, according to the AU.

The AU says the agency should help improve African countries’ access to capital markets and provide investors with more balanced and context-specific assessments of economies across the continent.

The drive to improve borrowing terms for the continent has become more urgent following years of increased government borrowing, which has pushed some countries into debt distress in recent years.

In many countries, interest payments on external debt have exceeded the annual budgets for key social sectors such as health and education.

“AfCRA aims to reduce such burdens by improving investor confidence and market transparency,” the AU said, adding that the agency will also rate non-African entities where appropriate.

The AU said the new agency is also expected to boost coverage, with 23 economies on the continent lacking a rating from the three big agencies.