The Africa Credit Rating Agency (AfCRA) is targeting the end of March 2027 to publish its first sovereign credit ratings as it begins engagements with African governments ahead of the assessments.
The agency’s interim Chief Executive Officer, Sifiso Falala, disclosed this in an interview with Reuters, saying AfCRA is already in discussions with 15 African governments. It also plans to conduct research in countries including Togo, Kenya, Seychelles, Burundi and Mauritius as it prepares to assess their creditworthiness. AfCRA was officially launched by the African Union (AU) in Mauritius on October 7, 2026, to provide an additional African perspective on how the continent’s economies are assessed by international financial markets.
Falala said the agency remained on course to publish its first results before the end of March 2027.
“We will be in a position, by March, before the end of March, to have released results,” he said.
He identified the high cost of borrowing as one of the major financial challenges facing African economies, noting that the continent pays an estimated $75 billion annually in additional interest expenses compared with borrowers in other regions. He also put Africa’s total debt at approximately $1.9 trillion.
African Union figures show that the continent’s annual external debt servicing obligations increased from $61 billion in 2010 to $163 billion in 2024, reflecting the growing pressure on government finances. AfCRA plans to issue solicited sovereign credit ratings, meaning governments will pay for assessments and provide access to relevant officials and financial information. Beyond sovereign governments, the agency intends to assess African multilateral financial institutions, including the African Export Import Bank (Afreximbank), as well as private financial institutions.
Its entry into the market comes amid longstanding complaints from African leaders that international credit rating agencies do not adequately account for the economic conditions and financial realities of African countries.
The three major global agencies, S&P Global Ratings, Moody’s and Fitch Ratings, dominate the sovereign credit rating market. African governments have argued that their assessments sometimes overstate economic risks, contributing to higher borrowing costs and limiting access to international financing. However, the global agencies have rejected allegations of systematic bias, maintaining that they apply consistent rating methodologies across markets.
Credit ratings influence how investors assess a country’s ability to repay its debt. Lower ratings can increase the interest governments pay on loans and bonds while restricting access to certain categories of investors. AfCRA is expected to provide assessments based on deeper research into African economies and greater consideration of regional economic conditions as part of efforts to strengthen the continent’s financial independence.
The agency is privately owned by South African research company Plus 94 Research. It plans to raise $15 million through a share sale that would give African investors a two thirds stake. It has also acquired a 51 per cent stake in Sovereign Africa Ratings, a South African credit rating firm.
However, its success will depend on its ability to establish an independent and credible rating system that investors, lenders and governments can trust. Its first sovereign assessments will provide an early indication of whether it can achieve this objective.
