African Union Launches Continent’s First Credit Rating Agency

The African Union is launching the continent’s first credit rating agency on Wednesday, seeking to offer an alternative to the three dominant global ratings agencies.

The launch comes as heavy debt burdens weigh on many African economies, highlighting the importance of how borrowers’ creditworthiness is assessed.

Credit ratings help investors evaluate the risk of lending to governments and other borrowers. Those assessments can influence access to financing and the cost of borrowing.

The new agency is intended to provide an African alternative in a field dominated by the global “Big Three.” Its launch marks a step toward expanding the range of credit assessments available on the continent.