African Leaders to Discuss Establishment of an African Credit Rating Agency in Addis Ababa
ADDIS ABABA, February 13, 2025 – African heads of state and government will convene this Friday in Addis Ababa for a presidential dialogue focused on the creation of an African credit rating agency. This initiative highlights Africa’s commitment to enhancing the continent’s financial sovereignty and addressing long-standing challenges posed by the three major international credit rating agencies.
The meeting, held alongside the 38th Ordinary Session of the African Union (AU) Summit at the organization’s headquarters, will also bring together policymakers, financial experts, and development partners to discuss the operationalization of a dedicated credit rating agency for the continent.
As Africa pursues economic integration and resilience, the establishment of the African Credit Rating Agency (AfCRA) represents a significant step in affirming the continent’s position in global financial governance.
During the event, African leaders are expected to reaffirm their political will and collective commitment to creating this agency. The forum will allow them to review the progress of ongoing technical work, clarify AfCRA’s role in supporting financial stability and growth across Africa, and explore collaborative partnerships with development allies and international financial institutions.
Currently under development, the agency is slated for an official launch in June 2025 as part of the broader African Union program aimed at financial integration and independence.
The objective of establishing an African credit rating agency is to “provide fair, transparent and development-focused credit ratings that reflect the realities and potential of African economies,” according to the AU’s official website. Its primary aim is to “enhance transparency, reduce reliance on the three international credit rating agencies, and address the specific needs of African countries, institutions, and contexts,” the AU notes in a presentation regarding the future agency.
Designed to tackle concerns over biases, inaccuracies, and high costs associated with international credit rating agencies when evaluating African nations, this agency “will provide an opportunity for the continent to have a credit rating system that reflects Africa’s unique socio-economic realities and fosters a fairer representation of its creditworthiness,” project designers assert.
In contrast to traditional rating agencies such as Moody’s, Fitch, or Standard & Poor’s, AfCRA will focus exclusively on African economies, incorporating data and socio-economic indicators specific to each region.
Indeed, AfCRA’s objective is “not to compete with or replace” the three international credit rating agencies but rather to complement them by offering an alternative perspective. “It will focus on filling gaps in data and analysis, addressing regional nuances, and promoting African financial integration. This will allow for a diversified view of creditworthiness and fosters collaboration for mutual benefit,” it was added.
AfCRA is anticipated to lower the cost of credit ratings for African countries and businesses, enhance their access to financial markets, and ensure a more equitable representation of their creditworthiness.
