African economies have concluded on how they would be assessed on the global stage. This time, it would be through a new African-led credit rating agency which is set to begin operations by the end of September.
According to a Bloomberg report, the African Credit Rating Agency (AfCRA), backed by the African Union’s African Peer Review Mechanism (APRM), is being positioned as a homegrown alternative to international credit rating giants like Moody’s, S&P Global, and Fitch — firms often criticised for delivering what African leaders call “unfair” and “opaque” assessments.
AfCRA is expected to issue its first sovereign credit rating between late 2025 and early 2026, marking a significant milestone in the continent’s effort to reclaim narrative control over its economic performance.
Misheck Mutize, the APRM’s lead expert on credit-rating agencies, confirmed that the selection process for the agency’s first chief executive is nearing completion, with an official appointment expected in the third quarter of 2025.
“This agency will be rooted in Africa’s unique economic context,” Mutize said, “and will offer a more nuanced, transparent, and equitable evaluation of the continent’s creditworthiness.”
The creation of AfCRA comes after years of pushback from African governments who argue that Western rating agencies often issue downgrades that are disconnected from local realities, leading to higher borrowing costs and reduced investor confidence.
With rising debt concerns and global economic volatility impacting African nations, the launch of a continental rating agency is expected to improve credibility, reduce dependence on foreign evaluations, and boost investor trust from within the region and beyond.
