The African Union (AU) has launched the Africa Credit Rating Agency (AfCRA) in Mauritius, in a move aimed at strengthening Africa’s financial sovereignty and providing independent assessments of the continent’s economies.
The agency is expected to offer an Africa-focused perspective on sovereign credit risk, incorporating African data, expertise and economic realities into credit ratings that influence borrowing costs and access to international capital.
Mahmoud Ali Youssouf, chairperson of the AU Commission, spoke at the official launch in St Louis, Mauritius, on Wednesday.
He said credit ratings directly affect the cost and availability of capital, warning that assessments that fail to adequately reflect African realities could leave countries facing higher borrowing costs.
According to Youssouf, expensive borrowing can limit governments’ ability to finance critical sectors, including infrastructure, healthcare, education, energy and industrialisation, particularly as many African countries face debt-servicing pressures.
“Africa is building a stronger and more resilient financial architecture, with AfCRA set to become an important pillar,” he said.
He added that the agency would provide African and international investors, as well as economic partners, with reliable, independent and technically rigorous analysis of African economies and credit risks.
AfCRA Will Not Replace International Rating Agencies
Youssouf clarified that AfCRA was not established to replace existing international credit-rating agencies or guarantee favourable ratings for African countries.
“Rather, it will provide an additional, independent and Africa-focused perspective to the market,” he said.
He stressed that the agency’s credibility would depend on its independence, professionalism, transparency and compliance with internationally recognised standards.
According to the AU Commission chairperson, AfCRA’s ratings must be evidence-based and free from political interference and conflicts of interest.
He also urged African countries to strengthen macroeconomic management, fiscal responsibility, transparency and debt sustainability.
Youssouf said the initiative aligns with the AU’s Agenda 2063 and broader efforts to strengthen the continent’s financial architecture and economic sovereignty.
He described the launch as a step towards giving Africa a greater role in shaping the global economic and financial system.
Mauritius Hails AfCRA as Landmark for Africa
Mauritius’ Minister of Financial Services and Economic Planning, Jyoti Jeetun, described the launch as a landmark for Mauritius and the continent.
She said AfCRA could deepen African capital markets and strengthen the region’s ability to mobilise capital for development.
Marie-Antoinette Rose Quatre, chief executive officer of the African Peer Review Mechanism (APRM), said the AU endorsed the establishment of AfCRA in 2017 and subsequently tasked the mechanism with supporting its creation.
Quatre said the APRM contributed evidence on limitations and biases in the assessment of African sovereign risk, alongside the development of AfCRA’s technical, operational and institutional framework.
She described credibility as the agency’s greatest asset, urging it to maintain evidence-based, transparent, technically rigorous and independent rating practices.
Quatre also called on African governments and institutions to provide accurate and timely information, while encouraging investors, financial institutions and the media to scrutinise the agency’s work.
The effectiveness of AfCRA will depend on its ability to deliver credible, independent assessments that reflect African economic conditions while maintaining internationally recognised standards.
