The African Export-Import Bank, the continent’s preeminent multilateral trade finance institution, announced on Friday that it has terminated its relationship with Fitch Ratings, a move that highlights growing friction between African financial institutions and Western credit agencies.
The bank, known as Afreximbank, stated the decision followed a formal review and reflected a “firm belief” that Fitch’s assessment no longer accurately captured the bank’s unique legal structure and mandate.
The move comes months after Fitch lowered the bank’s credit rating to one notch above “junk” status and maintained a negative outlook, a designation that can significantly increase borrowing costs.
“The credit rating exercise no longer reflects a good understanding of the Bank’s Establishment Agreement, its mission, and its mandate,” the institution said in a statement from its headquarters in Cairo.
Afreximbank’s exit is a rare and public rejection of the traditional gatekeepers of global capital markets.
While credit ratings are essential for institutions seeking to raise money from international investors, African leaders have long argued that Western agencies fail to understand the nuances of the continent’s economies and the specific legal protections afforded to multilateral lenders.
The bank emphasized that its “business profile remains robust,” pointing to legal protections embedded in its founding agreement, which has been ratified by its member states.
Founded over 30 years ago to stimulate African trade, the bank has become a cornerstone of the continent’s financial architecture.
It recently launched the Pan-African Payment and Settlement System and established a $10 billion fund to support the African Continental Free Trade Agreement.
As of late 2024, the bank’s total assets exceeded $40 billion.
Despite the break with Fitch, Afreximbank continues to hold investment-grade ratings from other major agencies, including Moody’s Investors Service, GCR, and the Japan Credit Rating Agency.
This article was edited with AI and reviewed by human editors
