The African Union Commission launched the Africa Credit Rating Agency (AfCRA) in a ceremony held in Port Louis, Mauritius, on Wednesday, October 7.

The agency promises to address what are perceived as unfair assessments by traditional European or American rating agencies, which have resulted in higher borrowing costs for countries across the continent.

The launch brought together senior African leaders and financial policymakers, including AU Commission Chairperson Mahmoud Ali Youssouf, Burundi's Prime Minister Nestor Ntahontuye, representing Burundian President and current AU Chairperson, and UN Economic Commission for Africa Executive Secretary Claver Gatete.

AfCRA is mandated to provide credit assessments based on African data, expertise and economic realities while complementing existing international credit rating agencies.

The launch comes eight years after the AU Assembly endorsed the creation of the agency in 2018 and follows the development of its institutional framework, governance and methodology under the African Peer Review Mechanism.

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The AU says the agency is intended to strengthen how African sovereigns, sub-sovereigns and businesses are assessed and understood in international financial markets through "better data, expertise and context on African credit risk.”

Youssouf said the agency as part of wider efforts to strengthen the continent’s financial architecture.

"AfCRA would contribute to strengthening Africa’s financial architecture, improving access to capital and reducing borrowing costs,” he said ahead of the launch.

According to Africa Union, the agency would complement existing international rating agencies by drawing on African expertise, data and technological capacity.

Youssouf also highlighted Mauritius’ financial services and trade infrastructure as important factors in its role as the headquarters of AfCRA.

The agency is structured as a private-sector-driven, self-funded and independent institution. Governments cannot own shares, while its governance framework includes safeguards intended to protect transparency, credibility and against conflicts of interest.

The launch comes as African countries face significant financing pressures.

According to the AU, the continent's external debt service increased from $61 billion in 2010 to $163 billion in 2024. The bloc says interest payments in many countries have exceeded public spending on sectors such as health and education.

The AU also says only 32 of Africa’s 55 countries currently have ratings from the three major international rating agencies, leaving 23 without such coverage.

AfCRA is expected to expand access to credit assessments while providing investors with additional, context-specific information on African economies.