🇲🇺 Africa Credit Rating Agency launches in Mauritius

The Africa Credit Rating Agency, or AfCRA, launched this month in Balaclava, northern Mauritius, as a new Mauritius-based agency that will rate African sovereigns, sub-sovereigns and corporates. The agency was first endorsed by African leaders at the African Union summit in Addis Ababa in 2017 and is intended to complement Moody’s, S&P and Fitch rather than replace them. According to the article, only 32 African countries currently have sovereign ratings from at least one of the Big Three, while the Africa Finance Corporation estimates the continent’s capital market at about $4 trillion and says less than 5% of instruments by value carry a rating.

Mauritius Foreign Minister Berenger Ramphoul said more than 25 African countries suffered negative credit rating actions during the Covid-19 pandemic. APRM CEO Marie Antoinette Cattra said AfCRA was deliberately designed as a wholly private-sector endeavour after being developed under the African Peer Review Mechanism.

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🔸 Source

@africaintel