Continent-Specific Evaluations: The African Rating Agency Will Settle in Mauritius

Mauritius will host the headquarters of the African Credit Rating Agency, an initiative aimed at providing evaluations tailored to African realities in response to criticisms of Western agencies.

Mauritius has been selected to host the headquarters of the new African Credit Rating Agency (AfCRA), a pan-African project that aims to offer an alternative to major international rating agencies. Expected to commence operations in the second quarter of 2026, this entity is presented as a response to the growing criticism of the current credit risk assessment system applied to African countries.

Designed as an independent structure, the AfCRA will be primarily owned by African private stakeholders. Initially, it will focus on rating debt denominated in local currency, with the goal of strengthening domestic financial markets. This approach aims to provide investors with tools that are better suited to the continent's economic realities.

For many analysts, this project comes at a time when the methods of international agencies such as Moody’s, S&P Global Ratings, and Fitch Ratings are frequently called into question. These agencies apply global standard criteria without always considering the economic, social, and political specifics of African countries. An analyst explains that most of these countries, classified as developing, often have to borrow in foreign currencies such as the dollar or euro, which increases their financing costs. However, these constraints are rarely accounted for in the evaluations by Western agencies.

Imrith Ramtohul, an investment consultant, believes this initiative represents an opportunity for the country, already recognized as an important financial center in the region. "It’s a new concept for Africa. Until now, investors have relied on ratings from Moody’s, S&P, and Fitch. A new agency focused on the continent can provide a different perspective. If it functions well, Mauritius could gain greater visibility," he observes. He emphasizes the importance of assessing the organizational structure of the AfCRA and its ability to start operations on schedule.

In an article published by The Conversation, it is noted that the decisions made by rating agencies directly influence the interest rates applied to bond issuances, as well as investor perceptions. These agencies are thus fully-fledged actors in the global financial system, rather than mere neutral observers. Criticisms particularly focus on the lack of precision and subjectivity of some ratings, which are often developed by analysts based outside the African continent.

According to Imrith Ramtohul, some African countries have been rated below the "investment grade" level, leading to higher borrowing costs. He believes that an agency like the AfCRA — if it proves its credibility — could help change this situation. "If it manages to establish a solid and suitable methodology, it is possible that interest rates on African debt could be lowered in the long run. But it will need time to prove itself," he concludes.

The establishment of the AfCRA’s headquarters in Mauritius thus marks a turning point in how Africa could approach debt management and its position in international financial markets.