AfCFTA Secretariat expresses concern over Afreximbank downgrade

African Continental Free Trade Area (AfCFTA) Secretariat has expressed grave concern over the recent downgrade of the African Export-Import Bank (Afreximbank) by Fitch Ratings from ‘BBB’ to ‘BBB-‘ with a negative outlook.

The Secretariat believes that this assessment may not fully reflect the evolving realities, priorities, and vision of the African continent.

Afreximbank is a strategic partner of the AfCFTA Secretariat in pursuing a successful implementation of the AfCFTA, and its interventions span key areas including trade and project finance, development of industrial value chains, and promotion of digital trade.

The AfCFTA Secretariat is concerned that the rating agency’s assessment may not fully understand the legal and governance arrangements underpinning African multilateral finance institutions.

Afreximbank operates under a Treaty-based framework that provides preferred creditor treatment, and the AfCFTA Secretariat views the classification of sovereign exposures as non-performing as not reflecting the spirit and structure of African multilateral finance.

The AfCFTA Secretariat believed that downgrades that fail to account for the political will and regional solidarity underpinning African initiatives risk reinforcing outdated narratives of African risk.

The Secretariat calls for a more balanced consideration of the status of African institutions, especially as duly mandated by sovereign African States.

They remained confident in Afreximbank’s long-term strength, its visionary leadership, and its critical role in the structural transformation of African economies.

According to the AfCFTA Secretary-General, H.E. Wamkele Mene: “Afreximbank is not only a cornerstone of Africa’s trade and development architecture but also an essential instrument for the delivery of the AfCFTA.”

“It is strange that the most valuable African multilateral institutions are mischievously reported as not entitled to the protections of African States afforded by their respective establishment treaties.”

The AfCFTA Secretariat stands firmly in support of Afreximbank and its continued leadership in financing the continent’s transformation and encourages all stakeholders to maintain confidence in Afreximbank’s institutional resilience and its foundational role in delivering the continent’s integration priorities.