A new Africa-led credit rating agency, the African Credit Rating Agency, is set to launch by the end of September 2025, offering an alternative to the dominant global firms—Fitch, Moody’s, and S&P.

Backed by the African Union through its African Peer Review Mechanism, AfCRA aims to provide credit assessments that better reflect African realities and economic contexts.

According to the lead expert on credit rating agencies at the APRM, Misheck Mutize the agency plans to release its first sovereign rating by late 2025 or early 2026.

It’s is in the final phase of selecting its Chief Executive Officer, with a shortlist already prepared and the appointment expected in the third quarter of 2025.

AfCRA was created in response to long-standing concerns from African policymakers about the way global rating agencies evaluate credit risks on the continent—often seen as biased and disconnected from Africa’s unique economic contexts.

Countries like Ghana and Zambia have criticized repeated downgrades by global rating agencies, claiming they drove up borrowing costs and played a role in their eventual defaults.

Most recently, the African Peer Review Mechanism contested Fitch Ratings’ decision to downgrade the African Export-Import Bank, arguing that the assessment was based on flawed analysis and a limited understanding of Africa’s financial landscape.

Fitch defended its rating, stating that it relies on transparent, globally applied criteria.

To ensure credibility and prevent political interference, AfCRA will not be owned by African governments, Mutize emphasized.

“This was designed to maintain independence and avoid conflict of interest. Shareholding will mainly be African private-sector driven entities,” he said.

AfCRA intends to focus primarily on local-currency debt ratings, a move that Misheck Mutize believes will help strengthen Africa’s domestic capital markets and reduce dependence on foreign currency-denominated debt.

He also clarified that AfCRA is not being established to issue overly favorable ratings for African countries, but rather to provide fair, context-aware assessments grounded in regional realities.

“It is important to debunk the assumption that AfCRA is being established to give favorable ratings to Africa, no. We will issue downgrades where necessary,” Mutize said.