The African Peer Review Mechanism (APRM), an African Union-backed initiative, is set to launch a continent-wide credit ratings agency in Mauritius on October 5 as part of broader efforts to address Africa’s high borrowing costs and reform the global financial system.
Paul Sikazwe, technical adviser on debt to the African Union Commission, announced the launch during a conference on debt and development in Nairobi on Wednesday. The event was hosted by campaign group AfroDad.
Sikazwe said the establishment of an African-owned ratings agency marked an important step towards strengthening the continent’s financial independence and advancing long-standing calls for reforms to the international financial architecture.
“This is a sign of progress in our ambition to provide momentum for the reform of the international financial architecture,” Sikazwe said.
An African alternative
The APRM has spent several years developing the agency, which will assess the creditworthiness of African sovereign states.
The initiative is intended to provide an alternative perspective to those offered by the world’s dominant credit ratings companies, including Fitch Ratings, Moody’s and S&P Global.
Many African governments argue that existing assessments by international agencies do not adequately reflect the realities and opportunities of African economies, contributing to higher borrowing costs on global markets.
Long-standing criticism of global agencies
African leaders have frequently accused the major international ratings agencies of unfairly evaluating African economies and reacting too quickly with downgrades during periods of crisis, such as conflicts, health emergencies and economic shocks.
According to critics, these ratings can increase the cost of borrowing and limit access to finance, even when countries are implementing reforms or facing temporary challenges.
The ratings agencies have consistently rejected these allegations, maintaining that they apply the same methodologies and standards when assessing countries around the world.
Debt pressures across the continent
The move comes at a time when debt sustainability remains a major concern across Africa.
Years of heavy borrowing, economic mismanagement in some countries and a series of external shocks have pushed several nations into financial distress. Zambia, Ghana and Ethiopia have all experienced sovereign debt defaults in recent years, highlighting the challenges many governments face in managing public finances.
The debt crisis has intensified calls for African-led solutions and greater representation in global financial decision-making.
Broader AU reforms gathering pace
Beyond the launch of the ratings agency, the African Union is advancing wider efforts aimed at improving debt management and financial cooperation among its 54 member states.
Sikazwe said plans are progressing for greater collective action on debt issues, including the inauguration of the African Monetary Institute in Abuja later in October.
The institute is expected to serve as a precursor to a future regional central bank and forms part of the AU’s long-term vision of deeper economic and monetary integration across the continent.
The launch of both institutions signals Africa’s determination to strengthen its financial architecture and increase its influence in global economic governance.
- The African Peer Review Mechanism (APRM) will launch a continent-wide credit ratings agency in Mauritius on October 5.
- The agency aims to provide an African-owned alternative to major global credit rating companies like Fitch, Moody's, and S&P Global.
- African governments criticize existing ratings agencies for unfair assessments and contributing to higher borrowing costs on global markets.
- Several African countries, including Zambia, Ghana, and Ethiopia, have experienced sovereign debt defaults recently, intensifying calls for African-led financial solutions.
- The African Union plans to inaugurate the African Monetary Institute in Abuja later in October as part of broader efforts for economic and monetary integration.
