Africa wants to regain control over its financial image. The African Union announced the official launch on October 7 in Mauritius of the African Credit Rating Agency (AfCRA), its own rating agency. A political response to the perceived unfavorable bias of international agencies towards the continent.
This is an act of financial sovereignty. Africa is about to take a major step in its quest for a fairer assessment of its credit risk. The African Union announced the official launch, on October 7 in Mauritius, of the African Credit Rating Agency, AfCRA.
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Based in Port Louis, chosen as the main jurisdiction after a selection process conducted under the aegis of the African Peer Review Mechanism (APRM), the agency is expected to become the financial voice of the continent.
The African Union had confirmed as early as February that Mauritius would host the headquarters, while inviting other states to apply for secondary locations. A continental network assumed.
The issue is political and economic. For years, African leaders have denounced an overestimation of risk by the three major global agencies – Fitch, Moody’s, Standard & Poor’s – which increases borrowing costs for African states and hinders investments.
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With AfCRA, Africa intends to offer an endogenous reading, rooted in local realities, of macroeconomic fundamentals and growth potential. An African agency to rate Africa, with African criteria.
The challenge remains to convince international markets of the credibility and independence of this new institution in the face of the rating giants.