The African Export-Import Bank (Afreximbank) has had its A-/Stable long-term issuer credit rating reaffirmed by the Japan Credit Rating Agency (JCR), a decision that has been interpreted as a critical endorsement of Africa’s financial resilience at a time of heightened global uncertainty.
The affirmation, announced on 27 August 2025, was said to reflect Afreximbank’s solid capital buffers, prudent liquidity policies, consistent profitability, and robust risk management practices. Beyond the numbers, however, the rating has been described as a signal to international investors that one of Africa’s foremost financial institutions remains not only stable but strategically indispensable.
The affirmation was delivered against a backdrop of macroeconomic turbulence. Global financial markets have been unsettled by tightening monetary conditions, elevated debt burdens, and geopolitical risks. African economies, in particular, have been tested by currency depreciation, rising borrowing costs, and sovereign downgrades.
Read also: Botswana declares public health emergency amid Diamond revenue decline
Despite this environment, JCR maintained that Afreximbank’s outlook would remain stable over the next 12 to 18 months. Analysts have argued that the affirmation demonstrated confidence in Afreximbank’s ability to weather shocks that have undermined many sovereign balance sheets on the continent.
The importance of such credibility has been emphasized by observers who note that African sovereigns and corporations often face disproportionately higher borrowing costs compared to their global peers. In this context, Afreximbank’s steady rating has been described as an anchor of financial reliability.
Afreximbank has been positioned for decades as a cornerstone in Africa’s trade finance ecosystem. Established in 1993, its mandate has been to finance and promote intra-African and extra-African trade, enabling industrialisation, value addition, and cross-border integration.
The Bank’s balance sheet has expanded significantly in recent years, with total assets surpassing US$40 billion by December 2024 and shareholder funds standing at US$7.2 billion. Its interventions have ranged from export credit financing to innovative solutions such as factoring, structured trade finance, and commodity-backed loans.
Central to its recent strategy has been support for the African Continental Free Trade Area (AfCFTA). Afreximbank has been instrumental in establishing the Pan-African Payment and Settlement System (PAPSS), designed to allow transactions in local currencies across the continent. In addition, the Bank has committed US$10 billion to an Adjustment Fund to assist member states in cushioning revenue losses during the implementation of AfCFTA.
These initiatives have underscored Afreximbank’s dual identity: not only as a financial institution but also as a developmental agent driving Africa’s long-term integration.
Read also: Africa’s solar imports surge by 60% as evidence of a renewable energy take-off emerges
The reaffirmation by JCR carries particular weight because of Afreximbank’s growing engagement with Japanese capital markets. In 2024, the Bank successfully completed its first Samurai bond issuance, raising JPY 81.3 billion (approximately US$530 million).
That transaction attracted wide participation from Japanese institutional investors and was interpreted as a milestone in diversifying Afreximbank’s funding sources. With JCR’s endorsement, market watchers believe Afreximbank’s credibility in Asia has been further solidified, opening doors to deeper pools of non-traditional capital.
This development has been seen as strategically significant for Africa, which has historically relied heavily on Western and multilateral financing structures. By broadening its global investor base, Afreximbank is being positioned as a financial bridge linking Africa’s trade ambitions with international liquidity.
The affirmation has been portrayed by Afreximbank’s leadership as an endorsement of its institutional strength. Denys Denya, Senior Executive Vice President, remarked that the rating validated the Bank’s “strong fundamentals and prudent risk management practices.”
According to Denya, the credibility afforded by the rating would enable the Bank to mobilize resources more effectively, thereby reinforcing its ability to finance projects that underpin trade and development. His comments have reflected a broader view that Afreximbank’s standing in global capital markets is directly tied to its capacity to deliver financing solutions for Africa’s transformation agenda.
The confidence is also expected to extend to investors. In an environment where many African sovereigns have been downgraded, Afreximbank’s steady affirmation is likely to reassure markets of the continent’s institutional resilience, at least within the multilateral space.
The reaffirmation has also raised questions about how Afreximbank is positioning itself relative to other African multilaterals. The African Development Bank (AfDB), for example, holds a higher credit rating, reflecting its broader shareholder base and stronger capital backing. However, Afreximbank has carved a niche as a specialist trade financier, with flexibility to innovate in ways that larger multilaterals sometimes cannot.
Read also: Egypt becomes Russia’s top African partner as El-Dabaa nuclear power project gains momentum
The comparison has been viewed as instructive. While AfDB provides large-scale infrastructure financing, Afreximbank has focused on trade finance instruments that address immediate liquidity constraints and enable export growth. This specialization has allowed it to respond quickly to crises—such as the COVID-19 pandemic, when it launched emergency liquidity facilities to stabilize trade flows.
By sustaining its rating, Afreximbank has been seen as consolidating its position as Africa’s trade-focused financial backbone, complementing broader development finance institutions.
The rating reaffirmation has been interpreted as more than a single institutional achievement. Credit ratings remain pivotal in shaping the cost of borrowing across Africa. Sovereign downgrades in recent years have pushed yields higher, limiting access to affordable capital.
By retaining a stable investment-grade profile, Afreximbank has demonstrated that African institutions can achieve and maintain credibility in the eyes of global rating agencies. This has been seen as an important signal, not only for investors but also for African policymakers seeking to attract capital on better terms.
The broader implication is that institutions such as Afreximbank could serve as conduits through which Africa’s collective trade and industrialisation agenda is financed, even when individual sovereigns struggle to maintain strong ratings.
Despite the positive outlook, challenges remain significant. African economies are still grappling with currency risks, fragile fiscal balances, and heavy debt burdens. The task for Afreximbank will be to scale up its interventions without overstretching its balance sheet.
Questions have also been raised about whether the institution can expand its funding role quickly enough to match Africa’s trade and industrialisation needs. The implementation of AfCFTA, for instance, will require trillions of dollars in investment in logistics, infrastructure, and industrial capacity. Afreximbank’s resources, while growing, remain finite.
Furthermore, credit ratings themselves have been critiqued for reflecting external perceptions that may not always capture Africa’s unique development dynamics. While the affirmation is positive, it does not remove structural constraints that limit Africa’s access to global capital on equal terms.
Read also: Tanzania blocks Soda Ash mining project at Lake Natron to protect Flamingo breeding groundsx
Nonetheless, the reaffirmation of Afreximbank’s A-/Stable rating has been viewed as a vote of confidence in Africa’s financial architecture at a critical juncture. It has demonstrated that African-led institutions can achieve credibility in global markets and play central roles in shaping the continent’s economic future.
As Afreximbank deepens its partnerships, expands into new markets, and supports the rollout of AfCFTA, the credibility conferred by its rating is likely to enhance its ability to mobilize global resources for Africa’s structural transformation.
Whether this momentum translates into tangible developmental outcomes will depend on how effectively these resources are deployed into trade, industrialization, and regional integration. But for now, the affirmation by JCR has marked a moment of reassurance: Africa’s trade finance backbone is holding firm, and its credibility in global markets remains intact.
