ADDIS ABABA, July 29 – Africa’s first continental credit rating agency is set to launch on 6 October in Mauritius, marking a significant milestone in the continent’s efforts to strengthen its capital markets and offer investors an alternative source of sovereign and corporate credit assessments.
The African Credit Rating Agency (AfCRA) is being established as an independent, private sector-led institution that will provide credit ratings based on African market conditions while operating on a commercial basis.
Speaking to CNBC Africa, Misheck Mutize, Lead Expert at the African Peer Review Mechanism (APRM), said preparations for the launch have advanced more quickly than initially anticipated following updates presented to African ministers during a recent Specialised Technical Committee meeting.
According to Mutize, “It means a new dimension has come. We are seeing more confidence in Africa as the investors who are investing in this are private.”
He noted that AfCRA will operate without government shareholding, reinforcing its independence and commercial orientation.
The launch comes amid growing debate over how global credit rating agencies assess African sovereigns and companies. Policymakers and regional institutions have repeatedly argued that international ratings often overstate the continent’s risks, leading to higher borrowing costs and limiting access to international capital markets.
Mutize said recent developments within the global ratings industry suggest those concerns are receiving greater recognition.
Referring to S&P Global’s acquisition of pan-African ratings agency Agusto & Co., which operates in Nigeria, Kenya, Rwanda and Ghana, he said the move reflected increasing acknowledgement of the value of African market expertise.
“We seem to be vindicated that we were raising legitimate concerns,” Mutize said, adding that African institutions have supported their criticism of sovereign ratings with empirical research.
Major international rating agencies, including Moody’s and S&P Global Ratings, have previously rejected allegations that their sovereign assessments are biased against African economies.
Mutize stressed that the objective of establishing an African-owned credit rating agency is not to secure more favourable ratings for governments or companies, but to improve the quality, accuracy and contextual relevance of credit assessments.
The launch of AfCRA is expected to be closely watched by investors and policymakers alike, as sovereign credit ratings play a critical role in determining countries’ access to international capital markets, Eurobond pricing and overall borrowing costs. If successful, the new agency could become an important addition to Africa’s evolving financial infrastructure while providing investors with another source of independent credit analysis.
