African Union set to unveil homegrown credit rating agency in October to provide alternative sovereign assessments and strengthen Africa’s financial independence.
The African Union is set to unveil a homegrown credit rating agency in Mauritius on October 5 as part of efforts to provide alternative assessments of African sovereigns and strengthen the continent’s position in the global financial system.
Paul Sikazwe, Technical Adviser on Debt to the African Union Commission, disclosed this on Wednesday at a conference on debt and development in Nairobi, Kenya, organised by campaign group Debt Justice, formerly known as Afrodad.
Sikazwe said the initiative would mark significant progress in Africa’s efforts to reform the international financial system and strengthen calls for changes to the global financial architecture.
The African Peer Review Mechanism, an AU-backed initiative, has worked for several years to establish a credit rating agency capable of assessing the creditworthiness of African sovereigns.
The agency is expected to provide an alternative to ratings issued by major international agencies, including Fitch Ratings, Moody’s and S&P Global Ratings.
African leaders have long criticised international rating agencies, arguing that their assessments do not always adequately reflect the economic conditions and risks facing African countries.
They have also accused the agencies of being too quick to downgrade African economies during periods of economic and political crises, including conflicts and pandemics.
The international rating agencies have rejected such criticism, maintaining that their assessments are based on methodologies applied consistently across countries and regions.
The establishment of an African credit rating agency comes as debt pressures remain a major concern across the continent following years of heavy borrowing, economic disruptions and external shocks.
Countries including Zambia, Ghana and Ethiopia have faced sovereign debt defaults or restructuring in recent years, highlighting persistent concerns over debt sustainability and access to affordable financing.
Sikazwe also said the African Union was advancing efforts to coordinate debt-related actions among its 54 member states.
He added that an African Monetary Institute is expected to be inaugurated in Abuja in late October, describing the institution as a precursor to the establishment of a regional central bank.
