Africa takes on Moody’s, S&P and Fitch; India knows the grievance (opens the source in a new tab)
- The African Union launched the Africa Credit Rating Agency in Mauritius on 7 October, arguing that Moody’s, S&P and Fitch overlook local strengths and saddle the continent with an unfair risk premium.
- A 2023 UNDP report put the cost at $74.5bn in excess interest and forgone borrowing; Africa had fewer than 4,000 ratings at the end of 2025, against more than two million in the US.
- India has long made a similar case: Japan’s JCR upgraded it to A- last month, but Moody’s and Fitch still rate it at the lowest investment grade.
- $74.5bn
- excess interest, UNDP estimate
- <4,000
- ratings in Africa, end-2025
- A-
- India’s rating from Japan’s JCR
Why it matters More ratings could open local bond markets to pension funds and banks, and India has a stake in showing global agencies can be challenged on substance.
Other side Credibility comes from a track record under stress: Ghana called Moody’s 2022 downgrade biased, then defaulted on much of its external debt soon after.