The Africa Credit Rating Agency (AfCRA), an African Union (AU)-mandated institution, was launched on Wednesday in Balaclava, northern Mauritius, to improve assessments of African credit risk and strengthen investor confidence.
Headquartered in Port Louis, the agency will provide ratings for African governments, businesses and public and private institutions, drawing on better data, expertise and local context.
Established under the oversight of the AU’s African Peer Review Mechanism, AfCRA is an independent, self-funded and private sector-driven institution. Governments are prohibited from owning shares to safeguard its independence from political influence.
Speaking at the launch, AU Commission Chairperson Mahmoud Ali Youssouf said politically influenced risk assessments could increase borrowing costs, limiting investment in infrastructure, health, education, energy and industrialisation.
According to the AU, Africa’s external debt service increased from US$61 billion in 2010 to US$163 billion in 2024, with interest payments exceeding public spending on health or education in most countries.
Only 32 African states currently have ratings from the three major international credit rating agencies. AfCRA aims to expand coverage and help more African issuers access capital markets.
Mahmoud Youssouf stressed that the agency would complement existing international rating agencies by providing an “additional Africa-focused perspective”.