Africa will launch its first continental credit rating agency in Mauritius on October 6, marking a significant step in the continent’s long-running effort to reshape how investors assess African sovereigns and companies and potentially reduce the high borrowing costs many governments face.
The African Credit Rating Agency (AfCRA) will operate as an independent, private-sector-led institution providing sovereign and corporate credit ratings designed to reflect African market realities while operating on a commercial basis.
Speaking to CNBC Africa, Misheck Mutize, lead expert at the African Peer Review Mechanism (APRM), said preparations had advanced faster than expected following discussions at this week’s African Union Specialised Technical Committee meeting.
“It means a new dimension has come,” Mutize said. “We are seeing more confidence in Africa because the investors backing this initiative are from the private sector.”
He said the agency would have no government shareholding, a structure intended to strengthen its independence and credibility among global investors.
