Africa Launches AfCRA to Challenge Global Credit Rating Agencies
A newly established credit rating agency led by Africa, the African Credit Rating Agency (AfCRA), is projected to commence its activities by the end of September 2025, providing a locally developed alternative to the dominance of major global firms like Fitch, Moody’s, and S&P.
The lead expert on credit rating agencies at the African Peer Review Mechanism (APRM) under the African Union, Misheck Mutize, revealed that AfCRA plans to release its sovereign rating between late 2025 and early 2026. The agency is in the process of finalising the appointment of a CEO, with a shortlist developed and an announcement expected in the third quarter of this year.
The establishment of AfCRA comes in response to growing dissatisfaction among African policymakers, who argue that the methodologies used by global rating agencies often misrepresent Africa’s credit risk, resulting in higher borrowing costs and potential sovereign defaults. Countries like Ghana and Zambia have publicly criticized consecutive downgrades that they believe have exacerbated their fiscal challenges.
Recently, APRM expressed concerns over Fitch Ratings’ downgrade of the African Export-Import Bank (Afreximbank), accusing the agency of flawed analysis and a limited understanding of the African financial landscape. In response, Fitch defended its evaluations as consistent and based on transparent global standards.
AfCRA will differ from traditional credit rating agencies in that it will not be government-owned in Africa, ensuring impartiality and credibility. Instead, the agency will receive primary support from private-sector organizations across the continent. Mutize emphasized that this structure is crucial for maintaining the agency’s independence and avoiding conflicts of interest.
The United Nations Economic Commission for Africa (ECA) has also raised concerns about the fairness of global credit ratings, attributing African countries’ high borrowing costs in part to ratings assigned by international credit agencies.
AfCRA will focus primarily on local-currency debt ratings, aiming to strengthen domestic capital markets and reduce reliance on foreign-currency borrowing. Mutize assured that AfCRA will not engage in biased, favorable evaluations of African nations. “We will issue downgrades where necessary,” he stated, underscoring the agency’s commitment to transparency and credibility.
AfCRA seeks to change the narrative by offering a more contextually aware and locally grounded evaluation system while helping African countries secure fairer terms in global and regional financial markets.
