Key Points
Key Points
- The African Union launched AfCRA in Port Louis, Mauritius, on October 7, 2026 — the continent's first credit rating agency.
- 23 of the AU's 55 member states have no rating from Moody's, S&P or Fitch; AfCRA will publish its first ratings in early 2027.
- UNECA says unfair risk premiums cost Africa about $75 billion a year in extra interest, with external debt service at $163 billion in 2024.
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Port Louis, Mauritius — Africa now has its own credit rating agency. The African Union officially launched the Africa Credit Rating Agency (AfCRA) on Wednesday, October 7, 2026, in Port Louis, Mauritius. The new agency will assess how safe it is to lend money to African governments, cities, banks and companies.
The idea was first approved by African leaders in 2018, nearly a decade ago. The agency is funded by private shareholders, not governments. This is meant to keep its ratings independent and fair.
AfCRA will not replace the big three global agencies — Moody’s, S&P and Fitch. It will work alongside them, offering an extra opinion built on African data and African economic conditions.
Why Africa built its own agency
African governments say the current rating system is unfair to them. They argue that global agencies do not fully understand African economies, so they rate African borrowers as riskier than they really are. This “prejudice premium” forces African countries to pay higher interest on loans.
The numbers are stark. Africa’s external debt service — the money countries pay each year to service foreign debt — rose from $61 billion in 2010 to about $163 billion in 2024, according to the African Union.
Hanan Morsy, Deputy Executive Secretary of the UN Economic Commission for Africa, said the unfair risk premium costs Africa around $75 billion every year in extra interest payments. That is money that could go to roads, schools and hospitals.
Millions of borrowers with no rating at all
Another big problem is coverage. Out of the African Union’s 55 member states, 23 are not rated at all by Moody’s, S&P or Fitch. Investors therefore know very little about them — and stay away.
AfCRA plans to publish its first ratings in early 2027. Its first goal is to give these unrated countries and smaller borrowers a proper assessment, using local data and regional knowledge.
“Independence is key”
AU Commission Chairperson Mahmoud Ali Youssouf described the launch as an important step toward African financial sovereignty. But he warned that the agency must stay independent to win the trust of investors.
He also cautioned that AfCRA alone will not quickly lower Africa’s borrowing costs. Broader reforms — better data, deeper local bond markets and stronger institutions — are also needed.
The agency was built under the African Peer Review Mechanism (APRM), with technical support from South African research firm Plus94 and backing from institutions including Afreximbank.
The global giants are watching
The big three are not standing still. Moody’s bought GCR Ratings in 2024, and S&P Global agreed in July 2026 to buy a majority stake in Nigeria’s Agusto & Co. AfCRA now joins them as Africa’s own voice in a market that decides who gets money — and at what price.
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