By Racheal Nagawa | Senior Reporter, African Business Insights
The African Export-Import Bank (Afreximbank) has formally ended its credit rating relationship with Fitch Ratings, citing the global ratings agency’s failure to accurately reflect the bank’s unique structure and mandate. The move underscores growing tensions between African financial institutions and international rating agencies over how creditworthiness is assessed.
“This decision follows a review of the relationship, and its firm belief that the credit rating exercise no longer reflects a good understanding of the Bank’s Establishment Agreement, its mission, and its mandate,” Afreximbank said in a statement dated January 23, 2026.
Background: Fitch Downgrade and Institutional Dispute
In June 2025, Fitch Ratings downgraded Afreximbank’s long-term foreign currency issuer default rating from ‘BBB’ to ‘BBB-’ with a negative outlook, citing a perceived increase in credit risk and concerns about risk management policies. Afreximbank disputed the downgrade, arguing that Fitch did not account for the bank’s intergovernmental framework, which emphasizes treaty-based cooperation and mutual commitments rather than conventional commercial risk metrics.
Afreximbank highlighted that it maintains investment-grade ratings from other agencies, including:
- GCR (Global Credit Ratings) – A (international scale)
- Moody’s – Baa2
- China Chengxin International Credit Rating Co., Ltd (CCXI) – AAA
- Japan Credit Rating Agency (JCR) – A-
The bank argued that Fitch’s assessment overlooked its multilateral mandate, governance model, and treaty-based operations, which differ fundamentally from typical commercial banks.
Implications for African Credit Systems
The dispute may accelerate support for the African Credit Rating Agency (AfCRA), a proposed continental ratings body aimed at correcting structural inequities in global financial systems that often disadvantage African institutions and sovereigns. Downgrades by international agencies can increase borrowing costs for African banks and governments, as lower ratings translate to higher interest rates and reduced access to international capital markets.
Afreximbank’s decision signals a push for greater African agency in financial assessment, emphasizing the need for rating methodologies that fully account for the unique structures of pan-African institutions.
Afreximbank’s Evolving Group Structure
Headquartered in Cairo, Egypt, Afreximbank has grown into a group entity comprising:
- The Bank, providing trade finance and development support across Africa
- Fund for Export Development Africa (FEDA), an equity impact fund subsidiary
- AfrexInsure, an insurance management subsidiary
The institution has played a key role in facilitating intra-African trade, financing development projects, and supporting economic integration on the continent. Its separation from Fitch underscores both the complexity of its operations and the challenges African institutions face in engaging with global financial systems.
About the Author
Racheal Nagawa is a Senior Reporter covering finance, banking, and African economic development. She specializes in cross-border trade finance, institutional governance, and the intersection of policy and markets across the continent.
