AU to launch Africa Credit Rating Agency in Mauritius
Mauritius was selected as AfCRA’s headquarters following a competitive process.
The African Union plans to launch the Africa Credit Rating Agency (AfCRA) in Mauritius this week. The agency, which will be overseen by the African Peer Review Mechanism (APRM), aims to provide independent assessments of the creditworthiness of African governments, businesses and institutions. APRM estimates that Africa's market is worth around US$4 trillion, but less than 5% of financial instruments by value are currently rated.
This lack of credit ratings makes borrowing more challenging and expensive for issuers, and limits the pool of potential investors. APRM CEO Ambassador Marie-Antoinette Rose Quatre believes the agency will strengthen Africa's financial sovereignty by providing credit assessments that more accurately reflect the continent's economic realities.
Mauritius was chosen as the headquarters for AfCRA after a competitive process. The agency is intended to work alongside existing global credit rating agencies, enhancing transparency, investor confidence, and access to capital for African economies.
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