The Africa Finance Corporation (AFC) has achieved a milestone by receiving an AAA domestic credit rating with a stable outlook from China Chengxin International Credit Rating Co. Ltd (CCXI).
This achievement enables AFC to engage more deeply in China’s domestic debt capital markets, unlocking access to a broader pool of investors and diversifying its funding sources. The rating reinforces AFC’s commitment to accelerating industrialisation and infrastructure development across Africa.
AFC President & CEO, Samaila Zubairu, highlighted the importance of this recognition: “This endorsement validates our financial resilience, robust governance, and global reach. It strengthens our ties with Asian markets, propelling essential investments for Africa’s development and prosperity.” AFC plans to leverage this rating to issue its first panda bond, a move that will deepen engagement with Chinese bond investors and align with the Corporation’s strategy to tap global financial markets.
The CCXI report praised AFC’s sound risk management framework and insured loan portfolio, which effectively mitigates project credit risks. AFC’s robust performance includes a 15.3% increase in profits to US$329.7 million and a 17.3% rise in total assets to US$12.3 billion in 2023, surpassing its strategic target of US$10 billion in assets. Its Basel II capital ratio of 34.5% and strong liquidity coverage ratios underscore its financial health and resilience.
AFC’s investments in transformative projects, including the Dangote Refinery, ARISE Integrated Industrial Platforms, and Infinity Energy, were spotlighted for their contributions to Africa’s energy transition and industrialisation. Additionally, AFC expanded its membership base in 2023-2024, welcoming countries like Ethiopia, Burundi, and Swaziland, underscoring its role as a key player in African development.
Partnerships with Asian financial institutions, such as the US$1.16 billion syndicated loan with Bank of China and ICBC London, further reflect AFC’s growing global collaboration and impact.
Further Africa