Moscow, Oct 7 (RIA Novosti/GNA) – The African Union (AU) will open its own Africa Credit Rating Agency (AfCRA) on Wednesday in the Mauritanian capital of Port Louis, the organization said.
“AfCRA 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,” the organization said on Tuesday.
The initiative is being implemented by the African Peer Review Mechanism (APRM) under the AU mandate.
According to South African news portal EWN, African countries and companies have historically faced a higher “risk premium” in global capital markets due to ratings from external agencies. The new agency should take the African context into greater account when assessing the creditworthiness of countries and companies.
Rutendo Hwindingwi, founder of the Tribe Africa Advisory consulting firm, reportedly said that “sustainability and independence” would be the key principles guiding the new rating agency’s operations.
GNA/RIA Novosti