African agency challenges Western credit ratings, redefines risk

An African credit rating agency, AfCRA, is launching to challenge Western dominance in financial assessments and redefine risk within the continent. This initiative aims to provide a more accurate reflection of African economies. AfCRA, backed by African private sector entities, will focus on local currency debt ratings, potentially lowering borrowing costs for African nations and businesses. Experts hope it will offer a fairer assessment, contrasting with existing agencies' perceived biases. The agency's success hinges on gaining international credibility and accurately reflecting African realities. This move follows criticism of Western agencies and a recent dispute over a Fitch credit rating downgrade of an African bank.