Africa's first credit rating agency officially launched in Mauritius

China News Service, Johannesburg, October 7th, Port Louis News: The African Union (AU) officially launched Africa's first credit rating agency "African Credit Rating Agency (AfCRA)" in Port Louis, the capital of Mauritius, on the 7th.

At the launch ceremony, AU Commission Chairman Yusuf called the establishment of the institution "a watershed in Africa's economic history" and said it was an important step in strengthening Africa's financial sovereignty.

He said that the establishment of the African credit rating agency was not to seek more favorable ratings, but to ensure that the ratings were credible, independent, and fully took into account the specific conditions of Africa, thereby promoting the establishment of a more balanced global financial architecture.

Yusuf further pointed out that the international market’s perception of “African risks” will directly affect Africa’s cost of capital and its ability to raise resources for development. African institutions therefore have a responsibility to safeguard the interests of African economies and help resolve structural problems in global financial markets.

According to the AU, African credit rating agencies will conduct credit ratings on sovereign borrowers, financial institutions and private companies. The agency will operate independently and be funded through shareholder capital and its own operating income.

After the African Union approved the establishment of the African Credit Rating Agency, it entrusted the African Peer Review Mechanism (APRM) to promote the transformation of relevant decisions into actual operations.

In recent years, as the borrowing scale of many African governments has continued to expand, some countries have fallen into debt difficulties, and the urgency of improving Africa's financing conditions has increased. (over)