Media reports Africa to initiate new credit rating organization
(MENAFN) Africa is set to launch its first homegrown credit rating agency, the African Credit Rating Agency (AfCRA), by the end of September, according to a Bloomberg report.
Backed by the Africa Peer Review Mechanism (APRM) under the African Union, AfCRA aims to release its first sovereign ratings by late 2025 or early 2026. Misheck Mutize, lead expert on credit ratings at the APRM, explained that a shortlist for the chief executive's position has already been made, with an appointment expected in the third quarter.
The move comes amid growing criticism from many Africa governments who say the dominant international agencies — Fitch, Moody’s, and S&P — unfairly underestimate their financial stability and raise borrowing costs. The APRM recently challenged Fitch’s decision to downgrade Afreximbank and called it flawed. Furthermore, countries like Ghana and Zambia, which have gone into debt default in the past few years, have raised strong objections to the current ratings framework.
To avoid political influence, AfCRA will not be state-owned; instead, it will predominantly be backed by Africa's private sector, although the specific stakeholders have not yet been revealed. Mauritius-based MCB Capital Markets is acting as transaction adviser.
At first, the new agency will focus on local-currency ratings. Mutize dismissed rumors that AfCRA was designed to provide more favorable ratings for Africa. The APRM, a voluntary tool founded in 2003 under NEPAD, comprises 44 AU members and aims to help assess and improve governance across Africa.
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