Africa to Debut Independent Credit Rating Agency This September

A new African-led credit rating agency is set to begin operations by the end of September, in a move designed to challenge the dominance of established global firms and provide assessments that reflect the continent’s economic realities more accurately, Bloomberg reported on Monday.

The African Credit Rating Agency, backed by the African Union’s African Peer Review Mechanism, will issue its first sovereign credit report by late 2025 or early 2026.

APRM’s lead expert, Misheck Mutize, on credit-rating agencies, confirmed that a shortlist of candidates for the chief executive role has already been finalised, and an appointment is expected in the third quarter.

AfCRA was conceived in response to ongoing criticism from African governments over what they describe as unfair and opaque assessments by global ratings giants Fitch Ratings, Moody’s Ratings, and S&P Global Ratings.

These agencies have repeatedly been accused of misjudging African economies and contributing to higher borrowing costs through negative credit outlooks.

The APRM last week questioned Fitch’s downgrading of the African Export-Import Bank, saying the decision was flawed and reflected a “misunderstanding of the governance architecture of African financial institutions.”

The ratings company said all its supranational assessments are taken by globally consistent and publicly available rating criteria.

Ghana and Zambia, two countries that defaulted on their debts in recent years, have been among the most vocal critics of the global ratings industry.

Despite its continental focus, AfCRA will not be state-owned, a deliberate choice meant to ensure independence and avoid conflicts of interest, Mutize said. Instead, its ownership will primarily consist of African private-sector entities, though no names have been disclosed as negotiations are ongoing.

MCB Capital Markets, part of Mauritius’s largest banking group, is serving as the transaction adviser.

AfCRA will initially focus on local-currency debt ratings, which advocates believe could help strengthen domestic capital markets and reduce Africa’s reliance on foreign currency borrowing. Mutize emphasised that the agency will not be lenient in its assessments.

“It is important to debunk the assumption that AfCRA is being established to give favourable ratings to Africa—no,” he said.