PORT LOUIS, October 07, 2026 (DAILYNWZ) — The African Union is launching the continent’s first homegrown credit rating agency on Wednesday, seeking to broaden how African economies are assessed as rising debt-servicing costs put pressure on governments across the region.
The Africa Credit Rating Agency, known as AfCRA, is being launched in Port Louis, the capital of Mauritius, where it will be headquartered. The project has been nearly a decade in development, with African leaders endorsing its creation in 2018.
The African Union says the agency will complement the established global rating firms by offering assessments based more closely on African data, expertise and economic conditions.
“Africa Credit Rating Agency complements existing global credit rating agencies by offering a perspective rooted in African data, expertise and realities,” the AU said in a statement.
African governments have long criticised the major international rating agencies for what they see as overly rapid downgrades and inadequate recognition of local conditions, particularly during crises such as conflicts and pandemics. The agencies have rejected the criticism, saying they apply the same methodologies across countries.
A 2024 Reuters investigation into Africa’s debt crisis found no evidence of systematic bias in sovereign ratings assigned to African countries by the three leading global agencies.
AfCRA will rate sovereign borrowers, financial institutions and private companies. The AU said it will operate independently and be financed through shareholder capital and its own operations, but it did not disclose details about its shareholders.
The initiative comes as African governments face a much heavier debt burden than in previous years. The AU said the continent’s annual external debt-service payments reached $163 billion in 2024, up from $61 billion in 2010.
In some countries, interest payments have surpassed annual government spending on major social sectors such as health and education, highlighting the pressure created by higher borrowing costs.
The AU hopes AfCRA can improve African countries’ access to capital markets by giving investors assessments that are more balanced and tailored to local conditions. It also expects the agency to strengthen market transparency and investor confidence, potentially helping governments secure financing on better terms.
AfCRA will also be able to rate entities outside Africa where appropriate, the AU said.
The agency is expected to widen coverage as well. The AU said 23 African economies currently lack a rating from the three major global agencies, leaving a gap that the new institution intends to address.
“The stakes are significant,” the AU said, as governments across the continent seek ways to manage debt pressures without further squeezing already stretched public finances.