Arab Finance: The African Union (AU) launched the Africa Credit Rating Agency (AfCRA) in Mauritius, introducing an independent institution aimed at expanding credit rating coverage and improving assessments of African economies.

The African Peer Review Mechanism (APRM) and its partners will convene the launch in Port Louis, where the agency is headquartered.

AfCRA will assess sovereign and sub-sovereign borrowers, companies, and public and private institutions. Its mandate includes complementing existing international rating agencies with assessments informed by African data, expertise, and economic conditions.

According to the AU, only 32 of its 55 member states have ratings from the three dominant global agencies, leaving 23 unrated. AfCRA aims to extend coverage and help more African issuers access capital markets.

The agency will operate as a private sector-led, self-funded entity, with governments barred from owning shares. Although APRM oversaw its establishment, AfCRA will operate autonomously.

The initiative comes as Africa’s external debt service rose to $163 billion in 2024 from $61 billion in 2010. The AU says stronger investor confidence and greater market transparency could help ease financing burdens.

The AU Assembly endorsed AfCRA’s creation in 2018, with governance structures and rating methodology developed during 2024 and 2025. Regional subsidiaries are planned, while ratings of non-African entities will be subject to management decisions.