A newly established credit rating agency led by Africa, the African Credit Rating Agency AfCRA, is projected to commence its activities by the end of September 2025, providing a locally developed alternative to the dominance of major global firms like Fitch, Moody's, and S P.
According to Misheck Mutize, the lead expert on credit rating agencies at the African Peer Review Mechanism APRM under the African Union, AfCRA plans to release its sovereign rating between late 2025 and early 2026. The agency is finalising the appointment of a CEO, with a shortlist developed and an announcement anticipated in the third quarter of this year.
The establishment of AfCRA responds directly to increasing dissatisfaction among African policymakers, who claim that the methodologies employed by global rating agencies frequently mischaracterise Africa's credit risk, leading to heightened borrowing costs and potential sovereign defaults. Nations such as Ghana and Zambia have publicly criticised consecutive downgrades that they argue have worsened their fiscal difficulties.
Recently, APRM expressed concerns regarding Fitch Ratings' downgrade of the African Export-Import Bank Afreximbank, accusing the agency of flawed analysis and a limited understanding of the African financial environment. In defence, Fitch maintained that its evaluations are consistent and reliant on transparent global standards.
AfCRA will not be owned by governmental bodies in Africa to guarantee impartiality and credibility. Instead, it will be primarily supported by private-sector organisations throughout the continent. Mutize stated that this structure is essential for preserving the agency's independence and avoiding conflicts of interest.