The rating reflects JCR’s assessment of Afreximbank’s strong strategic positioning, robust risk management framework, consistent profitability, prudent liquidity policies and resilient capital base.

JCR also noted the Bank’s important role in supporting trade finance and economic development across Africa and the Caribbean.

The rating agency stated that it expects Afreximbank’s rating to remain stable over the next 12 to 18 months, despite external macroeconomic challenges and potential pressures in its operating environment.

Reacting to the announcement, Mr. Denys Denya, Afreximbank’s senior executive vice president, said the affirmation reinforces the Bank’s credibility in global markets and highlights its systemic importance to Africa.

“JCR’s rating underscores our strong fundamentals and prudent risk management practices,” he said. “It strengthens our ability to diversify our funding sources, including tapping into Japan’s capital markets, to further advance our mandate of promoting and financing intra- and extra-African trade.”

Mr. Denya reaffirmed Afreximbank’s unwavering commitment to its member states, partners and clients, noting that its consistent delivery, even in challenging times, has been a key driver behind its strong credit standing.

“This rating is a testament to the Bank’s resilience and strategic focus, enabling us to mobilise resources to drive trade and development in Africa and the Caribbean,” he added.

The JCR affirmation is expected to bolster confidence among investors and stakeholders, supporting Afreximbank’s ongoing efforts to expand its global funding base and enhance its market presence.

In line with this, Afreximbank successfully completed its inaugural Samurai bond issuance in Japan in 2024, raising JPY 81.3 billion (US$530 million).

The transaction, which attracted strong participation from a diverse pool of Japanese institutional investors, underscored the Bank’s growing appeal in international capital markets and its ability to mobilise resources beyond traditional geographies.

The success of the issuance further demonstrates Afreximbank’s credibility and capacity to secure innovative funding solutions in support of its mandate.

The product was developed specifically to address the banking challenges confronting African economies. This has been due to the withdrawal of many international banks from the continent – exits attributable to stringent regulatory and compliance requirements as well as costs.

Over the years, Financial Institutions on the continent have suffered from the reduction in their access to international correspondent banking services to facilitate their international trade.

This curtailment of trade lines effectively shut the entrance of our Financial Institutions to the rest of the world. Trade is the number one driver of growth, and banks’ inability to participate in trade transactions will lead to reduced growth in our economies and increased poverty.

AfPAY, which has been in a pilot phase for over a year currently, facilitates over half a billion dollars in monthly payments across Afreximbank’s member states. Notably, Zimbabwe has participated actively in the pilot, with twenty of its financial institutions using the solution. 

Mr Denys Denya, Executive Vice President, Finance & Administration, Afreximbank, commented:

“African banks have, for at least a generation, been dogged by the limited access to dependable banking partners willing to support their cross-border trade transactions. We are pleased to introduce into the market a product which transforms this dynamic, which we believe will accelerate cross-border trade on this continent, connecting Africa with an international financial eco-system that will accelerate its development and economic growth.”