Press Briefing: AFRODAD Welcomes Launch of Africa Credit Rating Agency

Event Details

Date: 8 October 2026 Time: 10:00 – 11:30 AM EAT

Speakers:

Dr. Yungong Theophilus Jong: Policy Advocacy and Research Manager, AFRODAD
Ejigayhu Tefera: Senior Researcher on Credit Ratings, APRM
Sonia Essobmadje, Chief, Finance and Domestic Resource Mobilization, United Nations Economic Commission for Africa (UNECA)

Nairobi, Kenya | 7 October 2026 — The Africa Credit Rating Agency (AfCRA) officially launches today in Mauritius, following years of policy development, technical work and consultations led by the African Peer Review Mechanism (APRM). The agency is intended to complement, rather than replace, existing global credit rating agencies by providing independent, transparent and locally informed assessments of African economies.

Why AfCRA Matters

Africa faces a profound development financing challenge. The continent’s public debt is estimated at US$2.14 trillion, around 60% of GDP, while debt-servicing costs are expected to reach approximately US$90 billion in 2026. African countries also pay significantly more to access international capital than countries in other regions.
AFRODAD’s research on credit rating agencies and the global financial architecture has consistently highlighted the role of ratings in shaping Africa’s access to private finance. Its research shows that African countries face disproportionately high borrowing costs and that credit ratings can influence both investor perceptions and government policy choices.
AFRODAD’s analysis has also documented concerns around unfair downgrades, fear-driven fiscal responses and the influence of Moody’s, S&P Global Ratings and Fitch Ratings on African governments’ access to capital. It has also highlighted how concerns about downgrades can discourage countries from seeking debt treatment, creating a vicious cycle in which higher perceived risk leads to higher borrowing costs, higher debt-service burdens and reduced fiscal space for development.
The consequences are ultimately borne by citizens, as scarce public resources are diverted from health, education, infrastructure, social protection, industrialisation and sustainable development towards costly debt repayments.
AFRODAD welcomes the launch of the Africa Credit Rating Agency (AfCRA) as an important step towards strengthening Africa’s financial sovereignty and addressing structural inequalities in the global financial system. However, AfCRA’s credibility will depend on its independence, transparent methodologies, technical rigour, strong governance and protection from political interference. It must provide ratings that are trusted because they are rigorous, not simply because they are African. Janet Zhou, AFRODAD’s Executive Director

An African response to an unequal system

AFRODAD believes AfCRA can provide an important African perspective within the global credit-rating ecosystem by developing assessments that better reflect African economic realities, country-specific contexts, resilience and development trajectories. “Africa cannot achieve sustainable development when the cost of financing development itself is structurally prohibitive. The question is not simply how much Africa borrows, but also how African economies are assessed and priced in global capital markets,” said Dr. Yungong Theophilus Jong, Manager – Policy Advocacy and Research at AFRODAD.
A credible African rating agency could:

Provide an independent benchmark against existing global ratings;
Improve the quality and availability of information on African economies;
Strengthen investor confidence and transparency;
Support deeper domestic and regional capital markets;
Help address excessive risk premiums and borrowing costs; and
Strengthen Africa’s voice in the global financial architecture.

For AFRODAD, AfCRA is part of the broader struggle for fairer global financial governance and greater African agency over development financing. The agency alone will not resolve Africa’s debt and financing challenges; deeper reforms to the international financial architecture, stronger domestic resource mobilisation, responsible borrowing and lending, and deeper capital markets remain essential.
AFRODAD will convene a virtual press briefing on 8 October 2026 to examine AfCRA’s significance and its potential contribution to fairer, more transparent and sustainable financing for Africa.

AFRODAD advocacy evidence

Challenges of Credit Rating Agencies in Africa (2023) — examines unfair downgrades, fear-based fiscal responses, private financing, and the case for an African credit rating agency.
Debt Restructuring: A Pan-African Perspective (2024) — examines the relationship between sovereign credit ratings, access to Eurobonds, and the high cost of borrowing for African countries.
Reforming the Global Financial Architecture: Analysis of Calls for Reform (2025) — examines structural inequalities in the global financial system, including the need to recalibrate credit-rating systems to reduce borrowing costs for developing countries.
Africa’s Position in the Global Financial Architecture (2026) — highlights the need for Africa to move from being a rule-taker to a rule-maker and secure fairer access to finance.

For inquiries, write to media@afrodad.org