Africa seeks fairer credit ratings

African countries could benefit from more context-driven credit assessments under a new continental agency launched in Mauritius, aimed at addressing gaps in how African economies and their risks are evaluated.

African Union Commission chairperson Mahmoud Ali Youssouf joined regional leaders and financial-sector representatives on 7 October for the official launch of the Africa Credit Rating Agency (AfCRA).

Youssouf said credit ratings directly affect how much countries pay to borrow, with higher financing costs potentially limiting spending on healthcare, education, infrastructure, energy and industrialisation.

He said AfCRA would bring African data, expertise and economic realities more fully into credit assessments, offering investors an additional independent perspective on the continent’s economies.