A newly established credit rating agency led by Africa, the African Credit Rating Agency (AfCRA), is projected to commence its activities by the end of September 2025, providing a locally developed alternative to the dominance of major global firms like Fitch, Moody’s, and S&P.
According to Misheck Mutize, the lead expert on credit rating agencies at the African Peer Review Mechanism (APRM) under the African Union, AfCRA plans to release its sovereign rating between late 2025 and early 2026. The agency is finalising the appointment of a CEO, with a shortlist developed and an announcement anticipated in the third quarter of this year.
The establishment of AfCRA responds directly to increasing dissatisfaction among African policymakers, who claim that the methodologies employed by global rating agencies frequently mischaracterise Africa’s credit risk, leading to heightened borrowing costs and potential sovereign defaults. Nations such as Ghana and Zambia have publicly criticised consecutive downgrades that they argue have worsened their fiscal difficulties.
Recently, APRM expressed concerns regarding Fitch Ratings’ downgrade of the African Export-Import Bank (Afreximbank), accusing the agency of flawed analysis and a limited understanding of the African financial environment. In defence, Fitch maintained that its evaluations are consistent and reliant on transparent global standards.
AfCRA will not be owned by governmental bodies in Africa to guarantee impartiality and credibility. Instead, it will be primarily supported by private-sector organisations throughout the continent. Mutize stated that this structure is essential for preserving the agency’s independence and avoiding conflicts of interest.

Widespread concerns about the fairness of global credit ratings extend beyond AfCRA. The United Nations Economic Commission for Africa (ECA) has recently highlighted African countries’ elevated borrowing costs, attributing this partly to the ratings assigned by international credit agencies.
AfCRA will primarily concentrate on local-currency debt ratings, a strategy designed to bolster the development of domestic capital markets and reduce dependence on foreign-currency borrowing. Mutize stressed that AfCRA will not function as a platform for biased, favourable evaluations of African nations. “We will issue downgrades where necessary,” he asserted, reinforcing the agency’s dedication to transparency and credibility.
AfCRA aims to alter this narrative by providing a more contextually aware and locally anchored evaluation system while assisting African countries in obtaining fairer terms in global and regional financial markets.