The African Union officially launched the Africa Credit Rating Agency (AfCRA) in Port Louis, Mauritius on 7 October, establishing a new Africa-focused institution intended to broaden credit-risk analysis and strengthen the continent’s financial architecture.
The agency, whose creation was endorsed by African leaders in 2018, is mandated to provide independent, evidence-based assessments of African sovereigns, sub-sovereigns, corporates and institutions.
The AU says AfCRA will complement existing international rating agencies by incorporating African data, expertise and economic conditions more deeply into credit assessments, African Economy Inc. reported.
The launch was attended by Mahmoud Ali Youssouf, Chairperson of the African Union Commission, alongside senior Mauritian officials, representatives of the African Peer Review Mechanism, Afreximbank, the United Nations, the private sector and diplomatic community.
Youssouf described AfCRA as an important component of efforts to strengthen Africa’s financial architecture and improve the continent’s economic sovereignty.
The agency is headquartered in Port Louis, with Mauritius selected as its primary jurisdiction because of its established financial services sector, regulatory framework and connectivity with African and international markets.
CBL stalled plan for Credit Agency
It will be recalled that the Central Bank of Libya (CBL) has been planning to launch a credit check agency in Libya since the Qaddafi era. This was part of a plan to reform Libya's banking sector and facilitate more credit and loans for business.
The absence of a credit check agency is one of the factors cited by Libyan banks for their reluctance to offer more business loans.