New Credit Ratings Agency Planned for Africa

A new independent credit ratings agency tailored to the needs of Africa's sovereign borrowers is expected to launch by next year, as announced by African Union Commissioner Albert Muchanga in Accra. This initiative aims to address the historical unfair treatment and high borrowing costs faced by African nations in the global financial market. The agency will not be owned by the African Union or any regional bloc, ensuring its independence and credibility. The establishment of this agency has been in consideration since 2021, driven by the need to enhance Africa's capital market and improve borrowing conditions. Collaboration among the African Peer Review Mechanism, African Development Bank, and African Export-Import Bank is key to its operationalization. Ultimately, the agency seeks to enable African countries to secure more favorable borrowing terms both domestically and internationally.