An African Union-backed African Credit Rating Agency is set to launch and begin operations in September 2025.
The move, according to the brains behind it, is designed to challenge the credit rating system dominated by global firms.
According to Bloomberg, AfCRA would help to provide assessments that prioritise and reflect Africa’s economic realities more accurately.
The Agency is expected to issue its first sovereign credit report by late 2025 or early 2026.
APRM’s lead expert, Misheck Mutize, confirmed that a shortlist for the chief executive position has been finalised, with an appointment expected in the third quarter.
AfCRA was established in response to growing criticism from African governments, who argue that global ratings agencies, such as Fitch Ratings, Moody’s, and S&P Global Ratings, unfairly assess African economies and obscure their evaluations. These agencies have faced repeated accusations of misjudging African markets, contributing to higher borrowing costs through negative credit ratings.
Last week, the APRM challenged Fitch’s decision to downgrade the African Export-Import Bank, calling the move flawed and a reflection of a “misunderstanding of the governance structure of African financial institutions.”
In response, Fitch stated that all its assessments of supranational entities adhere to globally consistent and publicly available criteria.
Ghana and Zambia, which both defaulted on their debts in recent years, have been particularly vocal critics of the global ratings industry.
Although AfCRA is focused on Africa, it will not be state-owned. Mutize explained that this decision was made to ensure the agency’s independence and avoid potential conflicts of interest.
Instead, ownership will be held mainly by private-sector entities across Africa, though the names of the stakeholders remain undisclosed as talks continue. MCB Capital Markets, part of Mauritius’s largest banking group, is acting as the transaction adviser.
Initially, AfCRA will concentrate on rating local-currency debt, a move supporters argue will help boost domestic capital markets and reduce the continent’s dependence on foreign currency borrowing. Mutize stressed, however, that the agency will not compromise on the rigour of its assessments.
“It is important to debunk the assumption that AfCRA is being established to give favourable ratings to Africa—no,” he said.
