African Union launches first credit agency
The African Union has launched its first credit rating agency on the continent, aiming to improve African countries' access to capital markets and provide more balanced financial assessments that reflect the true economic reality of Africa. This step comes after several years of increasing African government debt, with external debt service rising to $163 billion in 2024 from $61 billion in 2010, leading to interest payments surpassing the budgets of sectors like health and education in some countries. The new agency, headquartered in Mauritius, offers an independent perspective that enriches risk assessment and helps alleviate debt burdens, especially since 23 economies are not rated by major rating agencies, making it easier for investors to evaluate each country's potentials more accurately.
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