African Union Launches Continental Credit Rating Agency to Counter Western Bias

The African Union inaugurated its own financial rating agency in Mauritius on October 7, aiming to reduce African borrowers' reliance on Western agencies that are perceived as overly punitive on default risk, thereby lowering borrowing costs. The move is a concrete step toward financial sovereignty but faces credibility and methodology challenges. Its impact on actual spreads will depend on adoption by investors and issuers.