The African Export-Import Bank (Afreximbank) has responded to Fitch Ratings’ latest report with a firm reiteration of its financial transparency, governance integrity and strong commitment to its member states.
It also insisted that its operations remain governed by binding treaty obligations, not external misinterpretations.
In a statement by its Communications and Events Manager (Media Relations), Vincent Musumba, the regional lending giant emphasised that its financial reporting remains grounded in the highest global standards. “Afreximbank operates under very high standards of financial transparency.
“Our financial reporting strictly adheres to International Financial Reporting Standards (IFRS), including IFRS 9, which governs the classification and staging of loan performance, including non-performing loans”, the statement noted.
The Bank added that its application of IFRS 9 is clearly laid out in its 2024 Financial Statements and further clarified in the accompanying external auditors’ report.
“In fact, Fitch itself acknowledged the difference in approach, stating in its June 4, 2025, report that “Fitch’s definition of NPLs differs from the Bank’s approach, which makes use of forward-looking information”, the bank added.
Beyond the technical definitions, Afreximbank welcomed Fitch’s recognition of the Bank’s strong financial fundamentals. “The Bank operates with a high level of collateral and credit risk mitigants and has already taken relatively large provisions on some sovereign exposures, which would reduce any potential further negative financial impact for the bank,” the Fitch report noted.
The ratings agency also underscored the Bank’s robust capitalization and sound treasury management, referencing its “strong equity to assets and guarantees ratio,” “excellent internal capital generation,” and a liquidity rating of “a” supported by “strong quality of treasury assets.” Fitch further reported that the Bank’s concentration risk is “low.”
However, Afreximbank challenged Fitch’s decision to assign a ‘negative outlook,’ which was based on perceived risks of debt restructuring by certain sovereign borrowers. The Bank clarified that such concerns are rooted in a misinterpretation of the legal foundation on which Afreximbank operates.
“Fitch’s ‘negative outlook’ reflects the risk that the debt owed to Afreximbank by some of its sovereign borrowers may be restructured,” the Bank noted. “This is hinged on the erroneous view, in some quarters, that the treaty establishing Afreximbank, executed by its 53 participating African states, can be violated by the Bank without consequences.”
The Bank was unequivocal in reaffirming the binding nature of its founding treaty. “The Bank establishment agreement is a treaty entered into by, and among, all participating states and between the participating states and the Bank. Accordingly, Afreximbank would like to reaffirm that it is not participating in debt restructuring negotiations related to any of its member countries. To do so would be inconsistent with the Bank establishment treaty,” it said.
The statement further emphasised the Bank’s mandate and ongoing commitment to its member nations. “Afreximbank’s financial resilience, robust governance and unwavering commitment to excellence, and to Africa, are critical to the delivery of its mandate.
The Bank said it remains committed to supporting its member countries in navigating their economic challenges while promoting trade-led growth, economic development and general macroeconomic stability.