Can an African Credit Rating Agency overcome investor scepticism?
The African Union has launched the Africa Credit Rating Agency (AfCRA) to challenge the dominance and perceived bias of the 'Big Three' global rating agencies. Proponents argue that current ratings unfairly inflate borrowing costs for African nations, while the established agencies maintain their criteria are objective and universal.
Why it matters
This initiative represents a significant push for financial sovereignty in Africa, potentially altering how developing nations access global capital markets.
Can Africa itself correct the bias it says the Big Three credit rating agencies display in grading African sovereigns? The African Union (AU) and other voices on the continent believe this bias gives African countries unfairly low ratings, pushes up their borrowing costs and slows development.
The article presents both the AU's perspective on bias and the counter-arguments from established rating agencies.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in