Africa Launches New Credit Rating Agency to Boost Investment

Africa has launched the Africa Credit Rating Agency (AfCRA), an African Union-backed institution established to expand credit rating coverage across the continent and challenge the “Africa premium” in global financial markets.

In a notice dated October 7, the new Agency said it will provide independent, Africa-focused assessments of the creditworthiness of governments, businesses, and other institutions. The agency will pay particular attention to local-currency sovereign and corporate debt.

“The Africa Credit Rating Agency (AfCRA) is an African Union-mandated institution created to provide independent, credible, and Africa-focused assessments of creditworthiness, ” Africa stated stated.

The establishment of AfCRA follows several years of efforts to create an Africa-focused credit rating institution, with its first endorsement at the African Union Assembly in 2018.

In July 2023, African finance and economic ministers adopted a declaration in Nairobi supporting its establishment.

Thereafter, Institutional frameworks, governance arrangements, and rating methodologies were developed during 2024 and 2025 under the African Peer Review Mechanism (APRM).

The African Peer Review Mechanism (APRM) was officially launched in October 2026 in Port Louis, Mauritius, alongside the second Annual African Conference on Credit Ratings.

New Ratings Agency Seeks to Boost Investor Confidence

The launch comes as African countries continue to face high borrowing costs and limited access to affordable capital.

At the same time, a large share of the continent’s financial assets remains outside the coverage of major credit rating agencies.

According to Africa, less than a quarter of its estimated $4 trillion capital base is currently covered by credit ratings.

Therefore, AfCRA is aimed at ensuring that gaps are closed by producing credit assessments based on African data, expertise and economic realities.

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The agency aims to complement, rather than replace, existing global credit rating agencies by providing investors with an additional perspective on African credit risk.

“Its mission is to strengthen Africa’s financial architecture, close information gaps, and ensure that African sovereigns, sub-sovereigns, and businesses are assessed fairly in international financial markets,” the organization stated.

Agency Targets the ‘Africa Premium’

African policymakers have increasingly raised concerns that countries and companies on the continent can face higher financing costs partly because of how their risks are perceived by international investors.

The “Africa premium” refers to the additional cost of borrowing that African issuers may face compared with similarly positioned borrowers elsewhere.

AfCRA is expected to challenge this dynamic by providing more context-specific assessments of African economies and institutions.

By improving the availability and quality of credit information, the agency hopes to support better-informed investment decisions and potentially improve access to capital.

Investors could also benefit from increased access to market intelligence and credit information about African issuers, giving them a broader perspective when assessing investment opportunities across the continent.

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How AfCRA Will Operate

AfCRA is structured as a private sector-driven, self-funded and independent institution.

Governments will not be allowed to own shares in the agency, a measure intended to protect it from political influence and strengthen confidence in its ratings.

Its governance framework also includes safeguards focused on transparency, credibility and conflicts of interest.

Although the APRM oversaw the agency’s establishment, AfCRA is expected to operate autonomously.

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A photo showing african leaders during the launch of AfCRA in Mauritius. Photo/ Couresy