The African Credit Rating Agency (AfCRA) plans to release its debut sovereign credit ratings by late March 2027 as it starts engaging regional governments.
The institution is currently conducting preparatory research in Kenya, Mauritius, Seychelles, Burundi, and Togo, interim Chief Executive Officer Sifiso Falala stated in a interview with Reuters.
“We will be in a position, by March, before the end of March, to have released results,” Falala said, emphasizing that the timing coincides with preliminary discussions across 15 African states.
The move follows AfCRA’s launch by the African Union in Port Louis, Mauritius, aimed at countering perceived valuation biases from global rating agencies that elevate regional capital costs.
“Cost of borrowing is really a huge burden to Africa,” Falala noted, addressing systemic financing pressures across the continent’s sovereign debt market.
African nations face an estimated $75 billion annual interest premium due to conservative risk assessments on total continental debt approaching $1.9 trillion.
Meanwhile, the African Union reports annual external debt service obligations jumped sharply from $61 billion in 2010 to $163 billion by 2024.
Furthermore, commercial long-term borrowing by African sovereigns is projected by S&P Global Ratings to reach $155 billion this year, up from $140 billion previously.
AfCRA aims to complement incumbent agencies like S&P, Moody’s, and Fitch by integrating contextual economic metrics and expanding domestic investor participation.
