African Credit Rating Agency targets first sovereign ratings by March 2027

The African Credit Rating Agency (AfCRA) aims to publish its first sovereign credit ratings by the end of March 2027, according to interim CEO Sifiso Falala. The Mauritius-based agency is currently in discussions with 15 African sovereigns and plans to conduct research on nations including Togo, Kenya, Seychelles, Burundi, and Mauritius.

AfCRA was launched following an African Union initiative endorsed in 2018 to provide assessments that more accurately reflect the continent's economic conditions. African governments have frequently argued that global rating agencies do not adequately account for local development potential, leading to higher borrowing costs. Estimates suggest African borrowers pay approximately $75 billion more in annual interest than borrowers in other regions.

The agency also intends to assess private financial institutions and African multilateral lenders, such as Afreximbank. This move comes as the continent's annual external debt-service bill has risen significantly, reaching an estimated $163 billion in 2024.