Tinubu backs planned launch of Africa’s new credit rating agency

President Bola Tinubu has welcomed the planned launch of an African credit rating agency, saying the continent needs financial institutions that understand its economies and risks more accurately.

The African Union has announced that the African Credit Rating Agency, or AfCRA, will officially launch on Oct. 7 in Port Louis, Mauritius. Tinubu described the move as another step toward building African financial institutions capable of assessing the continent’s economic realities.

In a post on his official X account, Tinubu recalled that he had advocated for an African credit rating agency in a February 2026 Financial Times article. He also raised the issue at the Africa CEO Forum in Kigali, Rwanda, in May, calling for institutions that better understand Africa’s economic conditions.

“Africa is not asking for favourable ratings. We are asking for fair ratings, grounded in our fundamentals and in the reforms our economies are actually carrying out,” he said.

Credit ratings influence how investors judge the risk of lending to governments and companies. They can affect borrowing costs and the amount of capital available. African governments have repeatedly objected to what they call an “Africa premium,” in which investors may demand higher returns because of perceived risks on the continent.

Fitch, Moody’s and S&P Global Ratings currently play major roles in assessing African sovereign and corporate borrowers. Tinubu has argued that international assessments do not always capture African economic conditions and cited a 2023 United Nations Development Programme estimate that weaknesses in credit ratings cost African countries about $75 billion each year through higher interest payments and lost lending.

The proposed agency is expected to provide an Africa-focused alternative, including greater consideration of local conditions and reforms. The African Union has said AfCRA will work alongside existing global rating agencies, not replace them. Tinubu said its establishment should be viewed as a demand for fair, fundamentals-based assessments rather than preferential treatment.

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Africa is not asking for favourable ratings. We are asking for fair ratings, grounded in our fundamentals and in the reforms our economies are actually carrying out.