The African Union Wants To Create Its Own Credit Rating Agency. Here’s Why

The African Union is set to unveil the African Credit Rating Agency (ACRA) in 2024 to challenge the often flawed ratings from giants like Fitch, Moody’s, and S&P. These major firms have been criticized for their inaccurate assessments of African economies, leading to expensive borrowing costs. ACRA aims to provide more accurate and balanced evaluations, potentially saving African nations billions and boosting investment in critical areas like infrastructure and healthcare. This new agency could transform how Africa is perceived by global investors and reshape the continent's financial future.

The African Union claims that by establishing a new sovereign credit rating organization, it will be able to give countries all around the continent more precise risk evaluation reports World Economic Forum.

The United Nations Economic Commission for Africa recently released a study (view below) outlining the idea for the new organization, the African Credit Rating Agency (ACRA), cl...