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Africa Launches Its Own Credit Rating Agency
Unveiled in Port Louis, Mauritius, the African Credit Rating Agency aims to give a fairer assessment of African economies at a time when borrowing costs across the continent have nearly doubled.
Port Louis, Mauritius. Africa has officially launched its own credit rating agency, a milestone in a long campaign to improve how African economies are assessed by international markets, the UN Economic Commission for Africa (ECA) announced.
African governments have long argued that ratings from the big global agencies overstate the risk of lending to the continent, pushing up the interest rates they pay.
The cost of borrowing
The launch comes as new research from ONE Data, based on World Bank debt statistics, shows Africa's average borrowing costs rose 91% between 2020 and 2024, from 2.7% to 5.1%.
Higher interest bills leave less money for roads, schools and hospitals. Countries facing the steepest costs have often stopped issuing bonds altogether.
What it could change
Supporters hope a home-grown agency will provide more context-aware assessments, widen the pool of investors and ultimately lower the cost of capital. Its credibility with global investors will be the key test in its first years.
Key Points
- Launched in Port Louis, Mauritius
- Backed by African institutions and the ECA
- Borrowing costs up 91% since 2020
- Goal: fairer ratings, cheaper capital