Afreximbank Dismisses Fitch Downgrade, Says Balance Sheet Remains Strong

African Export-Import Bank has played down Fitch Ratings’ decision to downgrade its long-term issuer credit rating to sub-investment grade, insisting that its financial position remains solid and that it will continue to support African governments and private sector development across the continent.

The bank’s president, George Elombi, said the downgrade does not alter Afreximbank’s policy relevance or its ability to fund strategic priorities in member countries.

He spoke on the sidelines of the signing of an $11 billion support package for South Africa, reaffirming the lender’s commitment to capital mobilisation and long-term investment in Africa’s productive sectors.

Fitch last month cut Afreximbank’s rating to BB+ from BBB-, citing a reassessment of the bank’s policy-importance risk to “medium” from “low.”

The agency pointed to exposures linked to sovereign debt restructurings, including losses associated with a $750 million facility connected to Ghana’s debt rework.

Elombi rejected concerns that the downgrade reflects underlying weakness, saying the bank’s treasury position remains robust. According to him, Afreximbank’s financial strength continues to be recognised even within the ratings industry, despite disagreements over how sovereign-related risks are assessed.

The downgrade has also intensified a rift between the lender and Fitch. Afreximbank confirmed that it ended its relationship with the rating agency on January 23 after months of dispute over the treatment of credit risks tied to African sovereign debt restructurings.

The bank has argued that its mandate and operating model require a different risk framework from that applied to commercial lenders.

Market reaction to the downgrade was swift, with Afreximbank’s bonds coming under pressure following the announcement. However, the lender has signalled that ratings actions will not derail its strategic direction or capital-raising plans.

Elombi said Afreximbank’s focus remains on deploying capital into Africa’s private and industrial sectors to drive value creation.

He emphasised that long-term wealth generation within the continent is central to reducing reliance on external financing and insulating African economies from global shocks.

Founded to promote intra-African trade and economic development, Afreximbank has become a key source of financing for governments, financial institutions, and corporates, particularly during periods of market stress.

Its role has expanded in recent years as several African countries navigate debt restructuring, currency pressures, and constrained access to international capital markets.

Despite the downgrade, Afreximbank said it will continue to engage investors and partners, maintaining that its balance sheet strength, capital base, and development mandate position it to remain a critical financier for Africa’s growth agenda.