Business · Markets · 1 hr ago
African Union-backed credit rating agency launches in Mauritius
The African Credit Rating Agency was inaugurated in Port Louis, the capital of Mauritius.
The African Union drove the project, which is also supported by the African Export-Import Bank.
African governments have long argued that major rating agencies do not understand their economies well enough and give them unfairly low ratings.
They say this can make borrowing harder and more expensive, leaving less money for public services and infrastructure.
A 2023 UN Development Programme report estimated that high interest costs and loans that were not granted cost African countries $74.5 billion a year.
The new agency aims to produce ratings that reflect local conditions, but financial markets will need to trust that it is independent.
It plans to issue its first ratings in spring 2027 and is beginning to build teams of analysts in several countries.
The African Credit Rating Agency was inaugurated in Port Louis, Mauritius, in a move backed by the African Union.
African governments say major Wall Street-based rating agencies do not understand African economies and give them unfairly low ratings.
A 2023 UN Development Programme report estimated that African states lose $74.5 billion a year through high interest rates and loans they do not receive.
The new agency aims to provide ratings that reflect local conditions and is expected to issue its first ratings in spring 2027.
Its interim chief executive is economist and market researcher Sifiso Falala.
- Who
- The African Credit Rating Agency, backed by the African Union.
- What
- It was inaugurated to provide credit ratings that reflect African conditions.
- When
- Wednesday; the first ratings are expected in spring 2027.
- Where
- Port Louis, Mauritius.
- Why
- African governments say major rating agencies misunderstand African economies and give them unfairly low ratings, making borrowing harder and more expensive.
This story does not have two clearly opposing sides.
When lenders cannot see clearly, they charge for the fog. Africa is still paying for the fog produced by Eurocentric assessments.
We will continue to actively support the global outcry against this leviathan.
A UN Development Programme report estimated that African states lose $74.5 billion annually through high interest rates and loans they do not receive.
The African Credit Rating Agency was inaugurated in Port Louis, Mauritius.
The new agency is expected to produce its first ratings.
- Headquarters location
- Port Louis, Mauritius
- Project backer
- African Union
- Estimated annual losses
- $74.5 billion, according to a 2023 UNDP report
- Expected first ratings
- Spring 2027
- Interim CEO
- Sifiso Falala
Sources
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