The Africa Credit Rating Agency (AfCRA) was officially launched in Mauritius on Wednesday, aiming to strengthen the continent’s financial independence and improve assessments of its economies, the African Union said.

AU Commission Chairperson Mahmoud Ali Youssouf described the launch as a milestone in Africa’s economic history.

Credit ratings directly influence access to financing and borrowing costs, he said, warning that assessments that overlook African economic conditions can leave countries paying more to borrow.

AfCRA will complement existing international rating agencies by providing independent, credible assessments based on African data and expertise.

Credibility and independence

Mauritius’ Financial Services and Economic Planning Minister Jyoti Jeetun said the agency could strengthen Africa’s financial system and attract investment.

She highlighted opportunities in infrastructure, renewable energy, telecommunications, healthcare and agriculture.

African Peer Review Mechanism chief Marie-Antoinette Rose Quatre said the AU endorsed AfCRA’s establishment in 2017.

She urged African governments to provide accurate and timely economic data, stressing that credibility would be the agency’s most important asset.

The initiative aligns with the AU’s Agenda 2063 development goals. (AA)