LAGOS, July 31 – S&P Global’s agreement to acquire a majority stake in Agusto & Co., one of Africa’s oldest domestic credit rating agencies, has added a new dimension to the debate over who will shape the future of sovereign and corporate credit ratings on the continent.
Announced on 28 July, the transaction remains subject to regulatory approval and is expected to close during the second half of 2026. While financial terms were not disclosed, the acquisition comes just over two months before the African Peer Review Mechanism (APRM) is scheduled to launch the African Credit Rating Agency (AfCRA) in Mauritius on 6 October.
The close timing of the two developments has drawn attention because AfCRA was established under an African Union mandate to provide an African-led alternative to the global dominance of the three major international credit rating agencies: S&P Global Ratings, Moody’s Ratings and Fitch Ratings.
Founded in 1992 by the late Nigerian economist Olabode Agusto, Agusto & Co. operates across Nigeria, Kenya, Ghana and Rwanda, making it one of the continent’s most established domestic rating agencies.
Following the acquisition, Agusto will continue operating as an independent ratings agency under its existing regulatory approvals, issuing its own credit ratings and methodologies.
Commenting on the transaction, Yinka Adelekan, Managing Director of Agusto & Co., said the deal fulfils the vision of the firm’s founder to affiliate with a leading global credit rating agency while strengthening African capital markets.
Yann Le Pallec, President of S&P Global Ratings, described the acquisition as a strategic investment supporting the company’s long-term expansion across Africa.
The acquisition comes as African governments continue to argue that international rating agencies often overestimate the continent’s political and economic risks, resulting in higher borrowing costs.
According to estimates linked to the United Nations Development Programme (UNDP), the so-called “Africa premium” may cost African economies as much as $75 billion through higher financing costs.
At present, only 32 of Africa’s 54 sovereign states have publicly available international credit ratings, leaving a significant gap in market coverage that global agencies and new entrants alike are seeking to address.
Against that backdrop, the African Credit Rating Agency was created to improve the contextual assessment of African sovereign and corporate risk rather than simply issue more favourable ratings.
According to Misheck Mutize, the APRM’s Lead Expert overseeing the project, AfCRA has been deliberately structured as a private sector-led institution with no African government ownership, a governance model intended to safeguard its independence and credibility.
Speaking recently about the agency’s progress, Mutize confirmed that AfCRA will begin operations in Mauritius on 6 October 2026, initially focusing on local currency debt ratings before expanding into foreign currency sovereign ratings.
Mutize also raised concerns about increasing acquisitions of African domestic rating agencies by global firms.
According to him, such transactions “could reduce competition and limit the range of alternative views available on African credit risk.”
Although he did not specifically mention S&P Global’s acquisition of Agusto & Co., the remarks highlight broader concerns that consolidation could reduce the number of large, independent African-owned rating agencies capable of offering alternative assessments of sovereign and corporate risk.
The debate extends beyond the ratings industry itself.
Credit ratings play a central role in determining sovereign borrowing costs, Eurobond pricing and investor confidence, making them a critical component of Africa’s access to international capital markets.
Supporters of AfCRA argue that an African-led agency could produce more context-sensitive assessments of economic and political risks, while global rating agencies maintain that internationally recognised methodologies provide consistency and comparability for investors.
For investors, the immediate focus will be on whether Agusto & Co. continues to operate independently under S&P’s ownership and whether its ratings remain distinct from S&P Global’s existing analytical frameworks.
Meanwhile, African governments, development finance institutions and capital market participants will closely watch AfCRA’s launch later this year to assess whether it can establish itself as a credible new voice in African credit assessment alongside the established global agencies.
