• AfCRA, a privately owned agency, is set to begin operations by September 2025
• It will focus on rating local currency debt for African states and institutions
• The initiative aims to offer a regionally accurate alternative to global rating firms

The African Credit Rating Agency (AfCRA), a privately owned financial rating body, is expected to begin operations by September 2025. The agency will provide credit ratings tailored to the continent’s specific needs, addressing long-standing criticism of the methodologies used by major international rating firms.

AfCRA will rate local currency debt issued by African governments, financial institutions, and businesses. It will not be owned by any African government, but by private sector actors across the continent to ensure independence and prevent conflicts of interest.

The agency will focus exclusively on African economies, using region-specific data and socioeconomic indicators. Its first sovereign rating is expected between late 2025 and early 2026.

Misheck Mutize, a credit rating expert at the African Peer Review Mechanism (APRM), said consultations are ongoing to appoint AfCRA’s director general. A launch was initially planned for June 2025 during a summit organized by the APRM, but the timeline was not met.

AfCRA is part of a broader response by African leaders to perceived bias in ratings by agencies such as Fitch Ratings and Moody’s. Critics argue that these firms overstate Africa’s credit risk, raising borrowing costs. The APRM recently criticized Fitch for downgrading the African Export-Import Bank (Afreximbank), citing a flawed assessment of the region’s financial dynamics.

The agency aims to offer independent, credible credit ratings that reflect Africa’s socioeconomic realities. While not intended to replace global agencies, AfCRA will provide an alternative perspective, close data gaps, and develop evaluation methods aligned with Africa’s development goals. This could reduce rating costs and improve Africa’s standing in capital markets.

The APRM will serve as a strategic partner, offering governance frameworks and technical support to align AfCRA’s work with the African Union’s broader development agenda.

Currently, two rating agencies operate on the continent: Bloomfield Investment Corporation in Côte d’Ivoire, and Augusto & Co, established in Nigeria in 1999. In July 2024, Moody’s acquired South Africa’s GCR Ratings to expand its reach in African markets. Concerns about independence prompted the AU to opt for a privately governed structure, positioning AfCRA to fill a strategic gap in Africa’s credit assessment landscape.