A new Africa-led credit rating agency, the African Credit Rating Agency (AfCRA), is scheduled to begin operations by the end of September 2025. The agency aims to provide a homegrown alternative to the dominant global firms Fitch, Moody’s, and S&P, which many African policymakers criticize for unfairly low ratings that inflate borrowing costs across the continent.
AfCRA will issue its first sovereign credit rating by late 2025 or early 2026, according to Misheck Mutize, lead expert on credit rating agencies at the African Peer Review Mechanism (APRM), an African Union body. The agency is currently finalizing the appointment of its Chief Executive Officer, expected by the third quarter of this year.
African countries have long expressed frustration with international rating agencies, arguing that their assessments often overlook local economic and political realities. For example, Ghana and Zambia have publicly condemned multiple downgrades that contributed to higher borrowing costs and financial distress. The APRM recently challenged Fitch’s downgrade of the African Export-Import Bank, accusing the agency of flawed analysis and misunderstanding of African financial institutions.
To maintain independence and credibility, AfCRA will not be owned by African governments but primarily by African private-sector entities, Mutize said. The agency will focus on rating local-currency debt to strengthen domestic capital markets and reduce reliance on foreign currency borrowing.
Mutize emphasized that AfCRA will not shy away from downgrading countries when warranted, dispelling concerns that it will issue overly favorable ratings for Africa.
The United Nations Economic Commission for Africa (ECA) has highlighted the disparity in borrowing costs between African nations and developed countries. Claver Gatete, ECA’s Executive Secretary, noted that while Germany can borrow $1 billion at 2.29% interest, Zambia may pay nearly ten times as much under current ratings.
Paystack launches new holding company
January 21, 2026
