<\/p>\n
Africa\u2019s new home-grown rating agency must convince investors that it won\u2019t be prone to local bias as it opens its doors for business.<\/p>\n
\u201cThe first hurdle will be inevitably credibility, because a new rating agency begins with a promise while investors ultimately require a track record,\u201d said Dennis Shen, a lecturer in finance at the International School of Management in Berlin.<\/p>\n
\u201cThe second hurdle will be demonstrating that its methodologies are rigorous enough to ease scepticism of any visible pro-African bias,\u201d he said.<\/p>\n
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Launched on Wednesday in Balaclava, north of the Mauritian capital of Port Louis, the Africa Credit Rating Agency is a continental initiative to provide alternative assessments of repayment risk.<\/p>\n
It was initially proposed almost a decade ago in response to the view of many African governments that they don\u2019t get treated fairly by international rating agencies and have to pay a so-called prejudice premium to borrow as a result.<\/p>\n
\u201cThis is a big statement by the continent that we are ready to manage our own affairs, to do business with the rest of the world, but at an international standard,\u201d said Marie-Antoinette Rose Quatre, chief executive officer of the African Peer Review Mechanism, a specialised agency of the African Union.<\/p>\n
The new rating agency will present its methodology, rating scale and timetable to start delivering assessments on Thursday.<\/p>\n
\u201cI do expect AfCRA results to be different for many methodological reasons, but different does not mean not credible,\u201d said Hannah Wanjie Ryder, CEO of consultancy firm Development Reimagined. \u201cWhat AfCRA\u2019s leadership will need to do is demonstrate a methodology that is clear, defensible and transparent.\u201d<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Africas #ratings #agency #faces #credibility #test #niche #market<\/p>\n","protected":false},"excerpt":{"rendered":"
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