Fitch: Our Risk Management Framework Remains Robust—Afreximbank

By Adedapo Adesanya

The African Export-Import Bank (Afreximbank) has reaffirming its strong financial position, rigorous risk management framework, and adherence to international reporting standards following issues around Fitch Ratings report.

Recall that Fitch Ratings, in its June 4, 2025, assessment, downgraded the bank’s credit rating one place above junk, as well as its substantial provisions on sovereign exposures, which reduce potential financial risks.

However, Fitch acknowledged Afreximbank’s strong capitalization, including its strong equity to assets and guarantees ratio and excellent internal capital generation.

The issue has led to a mild row between the African Union and the agency, with plans to launch an Africa-focused credit rating agency now in focus.

In the statement on Tuesday, Afreximbank emphasized that its financial reporting strictly follows International Financial Reporting Standards (IFRS), including IFRS 9, which governs loan classification and non-performing loan (NPL) assessments.

The bank clarified that while Fitch’s NPL definition differs from its forward-looking approach, its methodology is fully detailed in its 2024 Financial Statements and independently verified by external auditors.

Fitch’s negative outlook was attributed to concerns over potential sovereign debt restructuring involving Afreximbank’s member states.

However, the bank firmly stated that its establishment treaty—signed by all 53 participating African states—prohibits it from engaging in sovereign debt restructuring negotiations.

“Afreximbank would like to reaffirm that it is not participating in debt restructuring negotiations related to any of its member countries,” the statement read. “To do so would be inconsistent with the bank establishment treaty, which governs our operations.”

Fitch also recognized Afreximbank’s low concentration risk and strong liquidity position, rating its treasury assets as high quality, with the lender reiterating that its risk management framework remains robust, supported by its solid capitalization and prudent financial policies.

“Afreximbank remains steadfast in its mission to drive trade-led growth, economic development, and macroeconomic stability across Africa.

“Despite external assessments, the Bank expressed confidence in its financial resilience, governance standards, and unwavering commitment to its member states,” it added.

“Our financial strength, governance, and dedication to Africa’s prosperity remain unshaken,” the statement concluded. “We will continue to support our member countries in overcoming economic challenges while advancing sustainable development.”