AfCRA launched in Mauritius to provide independent assessments of African governments, companies and institutions…….
President Bola Tinubu played a role in advancing the establishment of the Africa Credit Rating Agency, his Special Assistant on Social Media, Dada Olusegun, has said.
The African Union officially launched the agency, known as AfCRA, in Port Louis, Mauritius, on Wednesday, marking the emergence of a continent-focused institution designed to assess the creditworthiness of African governments, companies and other institutions.
Olusegun said the idea of an African-owned credit rating institution had been under consideration for years but gained fresh momentum under Tinubu’s administration.
“While the idea of having an African Credit Rating Agency was first proposed in 2017, recent advocacy and push by President Tinubu has now made it a reality,” he said in a post on X on Thursday.
The presidential aide also pointed to other continental institutions established or advanced since Tinubu assumed office, citing the African Energy Bank, which is expected to be headquartered in Abuja.
He shared a video showing Tinubu advocating for an African rating agency at a recent meeting in Kigali, noting that the President had also made the case in a Financial Times article in February and reiterated it at the Africa CEO Forum in May.
The African Union said the establishment of AfCRA dates back to a decision by its Assembly in 2018, when the initiative was endorsed, while the African Peer Review Mechanism was subsequently tasked with helping transform the proposal into an operational institution.
The agency is expected to assess African sovereigns, sub-sovereigns, companies and institutions, using data, expertise and economic realities from the continent in its ratings.
According to the AU, AfCRA is intended to complement existing international credit rating agencies rather than replace them, while addressing what it described as gaps in the assessment of African economies.
Speaking at the launch, AU Commission Chairperson, Mahmoud Ali Youssouf, said the new agency would contribute to strengthening Africa’s financial architecture.
He, however, stressed that AfCRA would not be established to guarantee favourable ratings for African countries, but would instead be required to produce independent, evidence-based and technically rigorous assessments.
The agency is headquartered in Port Louis, with the AU citing Mauritius’ established financial services sector, regulatory environment and links to African and international markets as factors behind the choice of location.
