African Union launches rival to Western credit rating giants
The African Union (AU) has launched its first credit rating agency in a move it says will advance economic sovereignty, amid longstanding accusations of bias against the continent by Western rating agencies.
The Africa Credit Rating Agency (AfCRA), unveiled on Wednesday in Port Louis, the capital of Mauritius, where it will be headquartered, will assess governments, financial institutions, and businesses. The AU says it will operate independently, with governments barred from owning shares.
The initiative follows years of complaints against Moody’s, S&P Global, and Fitch, the dominant Western rating agencies, over their treatment of African borrowers, particularly downgrades during crises. Credit ratings influence borrowing costs and investors’ willingness to lend.
AU Commission Chairperson Mahmoud Ali Youssouf described AfCRA as an “important pillar” in Africa’s efforts to build a stronger and more resilient financial architecture.
“The agency will provide African and international investors, as well as economic partners, with reliable, independent and technically rigorous analysis of African economies and credit risk,” he said, according to an AU statement.
During the launch ceremony, Afreximbank Executive Vice President Denys Denya argued that Western assessments drive up Africa’s borrowing costs by failing to adequately reflect its economic realities. “When lenders don’t see clearly, they charge for the fog,” he said.
A 2023 UN Development Program study estimated that less subjective ratings could save African countries up to $74.5 billion. The AU says the continent’s external debt service rose from $61 billion in 2010 to $163 billion in 2024.
Ghana’s Finance Ministry accused Moody’s of “institutionalized bias against African economies” after a February 2022 downgrade. It said the agency, which cited Ghana’s mounting liquidity and debt challenges, omitted critical information and relied on an analyst who had not visited the country. Last year, Kenyan President William Ruto said global agencies had “deliberately failed Africa,” blaming flawed models and outdated assumptions for inflated borrowing costs.
Earlier this year, Afreximbank terminated its relationship with Fitch, saying the agency’s “credit rating exercise no longer reflects a good understanding” of the bank’s founding agreement, mission, and mandate. The firms have rejected the allegations of unfair treatment, saying they apply the same methodologies worldwide.
Several countries outside Africa have also questioned the fairness of global credit ratings or called for alternatives. In 2023, Russian President Vladimir Putin proposed a Eurasian rating agency to provide “absolutely objective” assessments. India’s Finance Ministry alleged systemic bias in sovereign ratings in 2021, while China’s Finance Ministry called a Fitch downgrade “biased” in April 2025.
