The African Union is set to launch a new continent wide credit rating agency in October as part of efforts to address high borrowing costs faced by African governments and strengthen the continent’s role in reforming the global financial system.
Paul Sikazwe, technical adviser on debt to the African Union Commission, said the African Credit Rating Agency will officially be launched in Mauritius on October 5, 2026.
Speaking at a debt and development conference in Nairobi organised by campaign group AfroDad, Sikazwe said the initiative represents progress in Africa’s efforts to reform the international financial architecture.
The African Peer Review Mechanism, an African Union-backed initiative, has been working for several years to establish the agency. It is expected to assess the creditworthiness of African sovereigns and provide an alternative source of credit assessments for governments across the continent.
African leaders have repeatedly criticised the three dominant international credit rating agencies, Fitch Ratings, Moody’s Ratings and S&P Global Ratings, arguing that their assessments do not always adequately reflect the economic circumstances of African countries.
Officials have also raised concerns that African economies are sometimes downgraded rapidly during periods of conflict, pandemics and other external shocks, increasing borrowing costs at a time when governments are already facing financial pressure.
The international rating agencies have rejected accusations of unfair treatment, maintaining that they apply consistent rating methodologies across countries worldwide.
Debt sustainability has become an increasingly important issue across Africa following years of heavy borrowing, economic challenges and external shocks. Zambia, Ghana and Ethiopia are among African countries that have experienced sovereign debt defaults or restructuring pressures in recent years.
The African Union is also pursuing broader continental cooperation on debt management. Sikazwe said the organisation’s 54 member states are working toward common approaches to debt issues.
As part of the initiative, the AU is preparing to inaugurate an African Monetary Institute in Abuja in late October. The institute is intended to serve as a precursor to the establishment of a future African regional central bank.
Source: Reuters
