AfCFTA Backs Afreximbank Amid Fitch Downgrade, Urges Balanced Credit Assessments
The African Continental Free Trade Area (AfCFTA) Secretariat has reaffirmed its strong confidence in the African Export-Import Bank (Afreximbank) following the recent downgrade of the Bank’s credit rating by Fitch Ratings from ‘BBB’ to ‘BBB-’ with a negative outlook.
In a statement, the Secretariat expressed concern that the rating does not fully capture the bank’s critical role in Africa’s economic transformation, nor the robust legal and institutional frameworks that underpin its operations. Afreximbank, a key partner in delivering the AfCFTA’s objectives, is a vital engine for financing trade, supporting industrial value chains, and facilitating cross-border payments under initiatives such as PAPSS (Pan-African Payment and Settlement System).
“Afreximbank remains a cornerstone of Africa’s trade and development architecture. It is deeply concerning that, at a time when Africa is mobilising its institutions to implement its most ambitious integration effort, such a rating action would be issued based on assumptions that fail to account for the Bank’s legal foundation and institutional mandate,” said Wamkele Mene, Secretary-General of the AfCFTA Secretariat.
The downgrade, attributed in part to the reclassification of sovereign exposures to shareholder states and concerns over potential restructuring of such exposures, has sparked debate about how African multilateral lenders are assessed by international rating agencies. The AfCFTA Secretariat highlighted that Afreximbank operates under a treaty-backed framework signed by 53 African states, which ensures preferred creditor status and protects against arbitrary classification of its sovereign lending as non-performing.
Investors, according to the AfCFTA, should see the Bank’s track record of delivering during economic crises — from pandemic recovery financing to trade support in difficult capital market conditions — as evidence of resilience rather than risk. The Secretariat called on financial markets to adopt a more nuanced and fair assessment of Africa’s homegrown institutions.
Afreximbank’s continued backing of the AfCFTA Adjustment Fund, its efforts to de-risk trade, and its promotion of industrialisation and economic integration were cited as vital to achieving Africa’s structural transformation.
“We encourage our financial partners and investors to maintain confidence in Afreximbank’s sound governance, financial strength, and central role in Africa’s economic future,” the Secretariat stated.
The call comes as Africa intensifies efforts to build stronger indigenous institutions that support its growth ambitions and reduce dependency on external capital markets.
