AfCFTA Backs Afreximbank Over Fitch Downgrade, Urges Confidence in Africa’s Economic Institutions

The African Continental Free Trade Area (AfCFTA) Secretariat has reaffirmed its confidence in the African Export-Import Bank (Afreximbank) following Fitch Ratings’ recent downgrade of the Bank’s credit rating from ‘BBB’ to ‘BBB-‘ with a negative outlook.

The AfCFTA described the rating action as troubling, warning that it risks undermining Africa’s drive for economic integration and sovereignty at a critical time.

In a statement, the AfCFTA Secretariat expressed concern that the downgrade does not fully account for the legal frameworks, governance structures, and development priorities that define African multilateral financial institutions. “Afreximbank is not only a cornerstone of Africa’s trade and development architecture, but also an essential instrument for the delivery of the AfCFTA,” said Mr Wamkele Mene, Secretary General of the AfCFTA Secretariat.

The downgrade, which Fitch attributed partly to the reclassification of Afreximbank’s sovereign exposures to shareholder States, was criticised for failing to recognise the Bank’s treaty-based preferred creditor status. The AfCFTA noted that Afreximbank enjoys protections conferred by agreements signed and ratified by 53 African nations, protections that Fitch’s assessment allegedly overlooked.

Afreximbank plays a central role in financing Africa’s industrialisation, intra-African trade, and regional value chains. It is also the lead financier of key initiatives such as the AfCFTA Adjustment Fund, the Pan-African Payment and Settlement System (PAPSS), and major infrastructure and digital trade projects. During times of global financial stress, the Bank has stepped in where conventional lenders have hesitated, including during the COVID-19 pandemic.

Business leaders and economists note that any undermining of Afreximbank’s credit profile could complicate financing conditions for key trade and infrastructure projects critical to Africa’s growth ambitions. However, the AfCFTA Secretariat has called on investors and financial partners to maintain confidence in the Bank, citing its sound governance, resilience, and proven track record in supporting the continent’s development objectives.

“Africa cannot accept that the assessment of its leading institutions is driven by a misguided and biased reading of the Treaty establishing the institutions,” Mene stated, urging a fairer and more context-sensitive approach by global rating agencies.

The AfCFTA stressed that Afreximbank remains vital to advancing the continent’s economic transformation and achieving the goals of Agenda 2063 and the African Continental Free Trade Area. It called for continued support of Africa’s homegrown institutions as the continent pushes forward with its integration and industrialisation agenda.

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