African Union to launch continent’s first credit rating agency

The African Union will launch the continent’s first credit rating agency on Wednesday, seeking to provide an alternative ‌to the “big three” global ratings agencies as debt burdens weigh on many African economies.

The Africa Credit Rating Agency (AfCRA) — the creation of which African leaders endorsed in 2018 — will be launched in Port Louis, the capital of Mauritius, where it will be based.

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

African leaders have long accused Western ​ratings agencies including S&P, Moody’s and Fitch 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 Reuter’s investigation into Africa’s debt crisis found no evidence of systemic bias in the sovereign ratings assigned to ​the region by the three major global credit rating agencies.

Rating experts said the success of the initiative will hinge on the perceived credibility of the new agency, especially in times of crisis.