AU sets date for credit ratings agency launch

The African Union is aiming to launch proposed credit ratings agency on December 31 with annual operational capital of $873,000, an official told an event in the Zambian capital Lusaka.

The organisation unveiled the plans last year amid growing complaints that the major global credit ratings agencies assessments of African countries are not fair.

"The market is waiting to see what the African Union is going to do with this project. So, we see our timeline as very much attainable," Misheck Mutize, lead expert for country support on rating agencies with the African Union, told Reuters on the sidelines of the event.

The union is aiming to secure funding from shareholders through equity capital from African multilateral financial institutions, domestic and region ratings agencies and private international investors, Mutize said in his presentation.

'Won't take money from governments'

The aim is for the new agency to be self-sustaining via revenue from its services. It would not take money from governments in order to avoid conflicts of interest and ensure its credibility.

The proposal must be approved by the African Union executive council, Mutize said.

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