AU to launch African Credit Rating Agency, October 7

The African Union (AU) will officially launch the African Credit Rating Agency (AfCRA) on October 7, 2026, in Port Louis, Mauritius, in a move aimed at changing how African economies and companies are assessed in global financial markets.

President Bola Ahmed Tinubu in a post on Thursday welcomed the planned launch, describing AfCRA as another step towards building African financial institutions capable of better understanding and assessing the continent’s economies and risks.

The President said Africa was not seeking favourable credit ratings but fair assessments that reflect the economic fundamentals and reforms being undertaken by countries across the continent.

AfCRA is being established against long-standing concerns among African policymakers that international credit rating methodologies do not always adequately capture the continent’s economic realities, potentially contributing to higher risk perceptions and borrowing costs.

The AU has said the agency will provide context-driven credit opinions for African sovereign and corporate entities, offering an African perspective alongside established global rating agencies such as Fitch Ratings, Moody’s and S&P Global Ratings.

The agency is expected to focus primarily on local-currency debt instruments, while its headquarters will be located in Mauritius. It is also designed to operate independently of African governments, a structure intended to strengthen its credibility.

Tinubu, who said he had advocated the establishment of an African credit rating agency earlier this year, said AfCRA would have to earn the confidence of global investors through the independence and rigour of its assessments.

He noted that credibility will be critical to whether the new agency can influence the cost of capital for African borrowers. A rating by itself does not automatically reduce borrowing costs; investors and lenders must accept the methodology behind the rating and be willing to price African debt accordingly.

The establishment of AfCRA therefore represents more than the creation of another rating institution. It is part of a broader African push to have greater influence over how the continent’s financial risks are measured and how those assessments feed into access to international capital.

The move also comes as African governments continue to seek ways of reducing the cost of financing infrastructure and development projects, with the continent facing significant financing needs.

Tinubu said the agency was another step towards building financial institutions that understand African economies and can assess their risks more accurately.

He said he looked forward to the October 7 launch.