How might an African credit rating agency improve the continent's financing conditions?

The African Union has launched an initiative for the new African Credit Rating Agency (AfCRA) to be headquartered in Mauritius and with operations slated to begin in mid-2026. While seeking to broaden market access, given that only 32 of 54 African sovereigns currently have public ratings, the AfCRA is driven primarily by longstanding accusations of systemic bias in existing ratings by the ‘big three’ credit rating agencies - seen as inflating African default risk and borrowing costs relative to peer countries elsewhere. Though AfCRA has been framed as an opportunity to reset this perceived Africa risk premium through a more grounded presence on the continent, critics have raised doubts over its independence, the appetite of investors for new ratings and the empirical grounds for alleged bias. Any impact of a new agency on financing conditions must also be considered in relation to wider factors, such as increased fiscal transparency and sustainable growth. This panel discussion, held in collaboration with the Konrad Adenauer Stiftung, will assess the potential impact of an African credit rating agency on reducing borrowing costs and lowering barriers to financing for African countries.