Afreximbank Defends Financial Strength After S&P Rating

Afreximbank has welcomed its latest investment-grade rating from S&P Global Ratings, saying the assessment underscores concerns that international credit rating agencies continue to misprice African risk despite the continent’s economic potential.

Speaking at the bank’s Mid-Year Media Roundtable in Abuja, President and Chairman of the Board of Directors, Dr George Elombi, said S&P’s BBB+ rating with a stable outlook reflects differences in rating methodologies rather than any weakening of the bank’s financial position. The rating comes just months after Fitch Ratings and Moody’s downgraded the pan-African lender.

Elombi said investor perception remains a key factor in access to capital, arguing that African institutions are often assessed using frameworks that overstate risk while overlooking the continent’s growth opportunities. He also defended the bank’s lending model, noting that approximately 80 per cent of Afreximbank’s loan portfolio is collateralised.

According to him, reduced activity in the Eurobond market does not indicate liquidity challenges, as the bank has diversified its funding base through stronger deposit inflows from African member states, reducing reliance on external borrowing.

The Afreximbank President reiterated the need for Africa to establish its own credit rating agency, arguing that, like other regions of the world, the continent requires institutions capable of evaluating its economies in light of local realities.

Beyond the ratings discussion, the bank announced a 75-million-dollar endowment for a research centre at the African Medical Centre of Excellence. It also reaffirmed its commitment to supporting the implementation of the African Continental Free Trade Area (AfCFTA), noting significant progress in harmonising trade standards across the continent.

Afreximbank further announced that the Intra-African Trade Fair (IATF) will return to Lagos from 25 to 30 November 2027, alongside the CANEX Weekend, reinforcing Nigeria’s role as a leading hub for trade, investment, culture and the creative economy.

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Tope Oke

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