MauritiusAfrica's First Credit Rating Agency Launches
The Africa Credit Rating Agency will rate governments, cities, and companies, aiming to complement the three US firms that control 95% of global ratings markets. The launch is part of a wider push by developing countries to change how global finance prices their risk.
Global Newsflix 2 min read
The Africa Credit Rating Agency (AfCRA) launched in Mauritius on October 7, marking a significant development in the continent's financial landscape. AfCRA will rate governments, cities, and companies, and is meant to complement the three US firms that control 95% of global ratings markets.
Marie-Antoinette Rose-Quatre, head of the AU body that incubated AfCRA, said the new ratings agency will add another opinion in the market place of opinions. She called it a very tangible outcome of the aspiration to build own financial institutions.
Only three African sovereigns hold investment grade ratings, according to the AU's African Peer Review Mechanism. Thirteen are rated at very high risk or in default, and 23 have no rating from the big agencies, which cuts them from international bond markets.
The AU has also said the continent's external debt service costs climbed from roughly $60 billion in 2010 to more than $160 billion in 2024. The launch of AfCRA is part of a wider push by developing countries, at the G20 and the UN, to change how global finance prices their risk.
Daniel Cash, a UK-based law professor who has advised the APRM on credit ratings, said credibility in credit rating is accumulated rather than declared. He said the real test will come over time, as trust will take time to build.
Key details of the new agency remain unclear, including its shareholders, chief executive, and board. Mauritius Commercial Bank and the pan-African lender Afreximbank took part in a 2025 meeting to raise support for the project.
The launch of AfCRA is seen as a significant step towards addressing the issue of unfair ratings, which are estimated to cost Africa $74.5 billion a year. The new agency will require a licence from Mauritius' financial regulator.
Key facts
- AfCRA will rate governments, cities, and companies
- Only three African sovereigns hold investment grade ratings
- The continent's external debt service costs climbed to over $160 billion in 2024
- The launch of AfCRA is part of a wider push to change how global finance prices risk
Three perspectives
Neutral
The launch of AfCRA marks a significant development in the continent's financial landscape. The agency's ability to build trust and credibility will be closely watched. As the agency begins its work, it will be important to monitor its progress and impact on the continent's financial markets.
Positive
The launch of AfCRA is a major step forward for the continent, providing a new voice in the market and potentially reducing borrowing costs for African countries. The agency's focus on local realities and expertise could lead to more accurate ratings and better financial outcomes.
Negative
The lack of transparency around AfCRA's ownership and leadership raises concerns about its independence and credibility. The agency's ability to challenge the dominance of the three US firms will be a significant test, and its success is far from guaranteed.
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