African Export-Import Bank (Afreximbank) has officially terminated its credit rating relationship with Fitch Ratings, marking the culmination of a growing disagreement over how the global rating agency assesses the bank’s risk profile, mandate and legal framework.
The decision follows weeks of tension after Afreximbank publicly rejected Fitch’s recent negative assessment, arguing that the rating failed to reflect the bank’s unique multilateral status, legal protections and development mandate.
How the Rift Began
The breakdown in relations can be traced to Fitch’s earlier rating action, which Afreximbank described as based on “an incomplete understanding” of its Establishment Agreement and operating model.
In a strongly worded response at the time, the bank insisted that Fitch’s analysis overlooked the legal immunities, shareholder support and institutional safeguards that underpin its financial strength as a multilateral financial institution.
Afreximbank argued that its structure is fundamentally different from commercial banks and sovereign institutions typically assessed by rating agencies, making conventional risk metrics inadequate for evaluating its stability and resilience.
Why Afreximbank Pulled Out
Announcing the termination, Afreximbank said it reviewed its relationship with Fitch and concluded that the credit rating process no longer aligned with its mission, mandate and institutional reality.
According to the bank, its business profile remains robust, supported by strong shareholder relationships and the legal protections embedded in its Establishment Agreement, which has been signed and ratified by member states across Africa.
The bank’s leadership also maintained that continuing with a rating framework that misrepresents its institutional design could create misleading perceptions in the market.
A Question of Narrative and Power in Global Finance
Beyond the immediate dispute, the episode highlights a broader issue confronting African multilateral institutions: the challenge of being evaluated by global rating agencies using frameworks designed primarily for commercial and sovereign entities in developed economies.
For Afreximbank, the decision to disengage from Fitch appears to be both a strategic and symbolic move, asserting control over how its risk profile and mandate are interpreted in global financial markets.
Afreximbank’s Financial Strength and Role in Africa’s Trade Agenda
Despite the termination of ties with Fitch, Afreximbank retains investment-grade ratings from other global agencies, including GCR (A), Moody’s (Baa2), China Chengxin International Credit Rating Co. (AAA), and Japan Credit Rating Agency (A-).
As of December 2024, the bank’s total assets and contingencies exceeded US$40.1 billion, while shareholder funds stood at US$7.2 billion.
For more than three decades, Afreximbank has played a central role in financing intra- and extra-African trade, supporting industrialisation and strengthening regional integration.
It is also a key supporter of the African Continental Free Trade Agreement (AfCFTA) and the Pan-African Payment and Settlement System (PAPSS), adopted by the African Union as a continental payment platform.
Headquartered in Cairo, Egypt, Afreximbank has evolved into a group structure that includes the Fund for Export Development Africa (FEDA) and AfrexInsure, expanding its influence across trade finance, investment and risk management.
What This Means Going Forward
The termination of Afreximbank’s relationship with Fitch signals a shift in how African development finance institutions may engage with global rating agencies in the future.
It raises critical questions about whether traditional credit rating methodologies can adequately capture the realities of multilateral African institutions, and whether Africa’s financial institutions should increasingly define their own narratives in global capital markets.
