The African Union (AU) is set to launch the Africa Credit Rating Agency (AfCRA) in Port Louis, Mauritius, this week.
The agency, established under the AU and overseen during its development by the African Peer Review Mechanism (APRM), aims to provide independent, Africa-focused assessments of the creditworthiness of African governments, businesses and institutions.
PRM estimates that Africa’s market is worth about $4 trillion, yet less than 5% of financial instruments by value are currently rated. It says the lack of credit ratings makes borrowing more difficult and expensive for issuers, while limiting the pool of potential investors.
APRM Chief Executive Officer Ambassador Marie-Antoinette Rose Quatre says the agency is expected to strengthen Africa’s financial sovereignty by providing credit assessments that better reflect the continent’s economic realities.
Mauritius was selected as AfCRA’s headquarters following a competitive process.
The agency is intended to complement existing global credit rating agencies and improve transparency, investor confidence and access to capital for African economies.
–SABC–
