In September 2020, Ghana publicly disagreed with international credit rating agencies following a downgrade by S&P Global and Fitch Ratings.

The disagreement prompted the formation of the Africa Credit Rating Agency (ACRA), led by the African Peer Review Mechanism (APRM), an autonomous arm of the African Union.

Speaking at a media briefing in Accra, Laud Mansfield Baddoo, a member of the Governing Council of APRM, highlighted the significance of the initiative for the continent's financial development.

“At the height of Ghana’s economic crisis, these agencies downgraded the country’s creditworthiness to junk status, effectively blocking Ghana from accessing the capital market and exacerbating the liquidity crisis into a solvency crisis… This new agency (Africa Credit Rating Agency) would be better attuned to the unique economic contexts and challenges faced by African nations,” said Baddoo.

The Director of Governance and Specialized Reporting at the APRM, Dr. McBride Nkhalamba, emphasized the importance of the new agency saying “the Africa Credit Rating Agency will serve as a catalyst for greater investment, economic stability, and sustainable growth across the continent”.

Key findings by the Technical Support Missions on international credit ratings recommended that governments must ensure consistency in data reporting and address key policy issues across institutions and actors. The mission further recommended internal capacity building for significant government institutions to reduce reliance on external consultants.

The Africa Credit Rating Agency is set to begin full operations by 2025, aiming to provide reliable assessments of both corporate organizations and countries across the African continent.

The Africa Peer Review Mechanism technical support mission comprised of the United Nations Economic Commission for Africa (UNCECA) and the Collaborative Africa Budget Reform Initiative (CABRI). The missions aim to identify gaps that could weigh down the country’s credit rating as well as key factors that could lead to positive rating outcomes and good practices to be shared with peers.