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From Uche Usim, Abuja
Afreximbank President and Chief Executive Officer, Dr. George Elombi, has defended the bank’s growing focus on financing African private businesses, saying the strategy is accelerating industrialisation despite what he described as unfair assessments by international credit rating agencies. He said the lender has supported major projects across the continent, including a $2.5 billion facility for the Dangote Refinery, while ensuring that about 85 per cent of its loan portfolio is backed by collateral to minimise risk.
Elombi also defended the bank’s financial strength in the face of recent rating concerns, arguing that global credit rating agencies continue to misjudge Africa’s risks while overlooking the continent’s economic potential.
Speaking during a meeting with journalists in Abuja yesterday, Elombi said the media has a critical role to play in shaping global perceptions about Africa and its institutions, stressing that negative narratives often make it harder for African organisations to raise capital and attract investment.
“The media is key to shaping the right perception because it influences how money is raised, how operations are conducted and how relationships are built,” he said.
He added: “We should work with the same objective and ensure that, as a bank, we get things right. We are fully in support of the African economy.”
Responding to questions on the bank’s relationship with international credit rating agencies, Elombi disclosed that Afreximbank had not been rated by S&P Global Ratings in recent years.
According to him, S&P initially considered the bank too small and insignificant to warrant serious attention.
“They thought we were too small, had no impact and were too irrelevant. But ratings are like examinations in school, they can change as you progress,” he said.
Elombi said the bank was established primarily to finance African trade, insisting that trade remains the foundation of economic development because it drives production, industrialisation and job creation.
He argued that over the years, Afreximbank has demonstrated its growing relevance by expanding its operations across the continent and becoming a major financier of strategic projects.
“They have moved from seeing us as irrelevant in 2014 to acknowledging our relevance in 2026. They now realise Afreximbank is too big to fail.”
The Afreximbank chief also criticised what he described as inconsistencies in the methodology used by international rating agencies in assessing African institutions.
He explained that while the bank previously sourced about 80 per cent of its borrowings from one region of the world, it deliberately diversified its funding sources after discovering cheaper and more sustainable liquidity elsewhere.
According to him, Afreximbank now attracts significant funding from Africa, Asia and the Middle East through innovative financing arrangements, including central bank deposits and corporate investments.
“We realised Africa’s capital was sitting abroad, so we introduced central bank deposits and began attracting funds from corporates.
Today, 38 per cent of our funding comes from Asia and 12 per cent from the Middle East.”
Despite successfully diversifying its funding base beyond traditional Eurobond markets, Elombi said some rating agencies still view the strategy negatively.
“We showed them that we can obtain cheaper funds from Africa and Asia instead of depending solely on Europe, but they still consider that a weakness.”
He argued that many international agencies continue to perceive lending in Africa as excessively risky despite evidence to the contrary.
“Africa is not the continent with the highest loan defaults. Year after year, the loans remain intact, yet the ratings do not reflect that reality.”
He urged journalists to highlight Africa’s success stories rather than focusing exclusively on negative developments.
“If we keep the negatives in the news, they will continue using those stories to downgrade us.”
On the bank’s risk management framework, Elombi explained that loans account for about 95 per cent of Afreximbank’s assets, adding that unlike many multilateral lenders that primarily finance governments, the bank lends extensively to the private sector while ensuring that approximately 85 per cent of its loans are backed by collateral.
“We lend more to private businesses, but we make sure the loans are properly secured.”
He dismissed suggestions that recent rating actions had weakened shareholders’ confidence in the institution.
According to him, shareholders remain supportive because the bank has consistently stepped in to finance projects and businesses when other institutions were unwilling to do so.
He cited Afreximbank’s $2.5 billion financing support for the Dangote Refinery as one example of the bank’s commitment to Africa’s industrial development.
“Our stakeholders are not perturbed. In fact, many believe our rating should be higher because they understand the value we bring.”
Elombi said about 80 per cent of the bank’s balance sheet consists of loans supporting critical sectors across Africa, including roads, manufacturing, ports and other strategic infrastructure.
He renewed calls for the establishment of an African-owned credit rating agency to provide what he described as fairer assessments of the continent’s economic realities.
“We need an African rating agency. Africa should not be the only region without one,” he said.
According to him, such an institution should be staffed by experienced African financial professionals capable of evaluating risks within the proper continental context.
On the bank’s engagement with China, Elombi said Africa must move beyond exporting raw minerals and instead develop local industries capable of processing strategic resources used in electric vehicle batteries and other emerging technologies.
“There is a revolution in electric batteries. We need the expertise to process those raw materials here in Africa instead of exporting them.”
He added that Africa should also invest heavily in data centres and advanced technology infrastructure, saying the continent possesses the financial resources but still relies heavily on imported expertise.
“We’re not interested in miners who simply export raw materials. We want companies that mine and also develop industries here.”
Elombi also reaffirmed Afreximbank’s commitment to the Pan-African Payment and Settlement System (PAPSS), describing it as a critical platform for deepening intra-African trade.
He revealed that the PAPSS payment card would soon be unveiled, adding that the operating company had already been established.
According to him, 190 commercial banks and fintech firms have joined the platform, while Afreximbank currently works with more than 600 commercial banks across Africa.
“The ecosystem must continue to grow for PAPSS to achieve its full potential.”
Addressing concerns about competition from cryptocurrencies and stablecoins, Elombi said PAPSS was designed to complement, rather than compete with, emerging payment technologies.
“Payments will remain payments. Crypto will exist, stablecoins will exist, and PAPSS will exist. We see collaboration, not competition.”
He noted that PAPSS can only operate with the approval of participating central banks and disclosed that 28 African central banks have already joined the initiative, providing the regulatory backing needed to support seamless cross-border payments across the continent.
