by Africa is set to make history this September with the launch of its credit rating agency. The African Credit Rating Agency (AfCRA) is expected to commence operations by the end of September 2025. This new institution aims to provide a credible, homegrown alternative to the global dominance of Fitch, Moody’s, and S&P.
African leaders and policymakers have long criticized the global credit rating agencies. They argue that these agencies often misjudge Africa’s credit risk. Such assessments have led to higher borrowing costs and, in some cases, sovereign defaults for countries like Ghana and Zambia.
The new credit rating agency is designed to address these concerns by offering fairer and more accurate evaluations of African economies.
How the Credit Rating Agency Will Operate
AfCRA is expected to issue its first sovereign rating between late 2025 and early 2026. The agency is currently finalizing the appointment of its Chief Executive Officer, with a shortlist already in place and an announcement expected in the third quarter of 2025.
The African Peer Review Mechanism (APRM), an organ under the African Union, is backing the agency. AfCRA will function as an independent, private-sector-driven institution. Its structure ensures credibility and independence, with ownership involving African governments, public institutions, and multilateral finance bodies.
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A Response to Global Criticism
The creation of the African Credit Rating Agency is a direct response to ongoing dissatisfaction with the methodologies of global agencies. African policymakers believe these methods do not reflect the continent’s economic realities.
For example, the APRM recently challenged Fitch’s downgrade of the African Export-Import Bank, calling the analysis flawed and lacking understanding of African financial systems.
Key Goals for the Credit Rating Agency
- Provide independent and accurate credit ratings for African countries, corporations, and sub-sovereign entities.
- Support investor decision-making with context-sensitive analysis and local expertise.
- Promote fair competition among credit rating agencies, leading to more affordable access to capital and the development of domestic financial markets.
Shaping Africa’s Financial Future
Launching a credit rating agency presents numerous challenges. AfCRA must ensure high standards, transparency, and robust data collection. The agency plans to leverage local expertise and digital tools, including artificial intelligence, to improve the quality and timeliness of its assessments.
By establishing its credit rating agency, Africa is taking control of its financial narrative. AfCRA aims to set new global standards for transparency and localization in credit assessments. AfCRA will provide a much-needed alternative, ensuring Africa’s unique economic realities are finally reflected in its credit ratings.
The agency’s launch marks a significant step toward achieving financial sovereignty and more equitable access to global capital markets.
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