AFC Receives AAA Credit Rating from CCXI, Strengthening Global Capital Market Engagement

CCXI analysts lauded AFC's robust risk management and strong credit profile, emphasizing its prudent risk appetite and insured loan portfolio, which significantly mitigates credit risks in its projects.

The Africa Finance Corporation (AFC), a leading infrastructure solutions provider in Africa, has achieved an AAA domestic credit rating with a stable outlook from China Chengxin International Credit Rating Co. Ltd (CCXI). This landmark rating opens new opportunities for AFC to access China’s expansive domestic debt capital markets, paving the way for diversified funding and accelerated infrastructure development across Africa.

CCXI analysts lauded AFC's robust risk management and strong credit profile, emphasizing its prudent risk appetite and insured loan portfolio, which significantly mitigates credit risks in its projects. This recognition strengthens AFC's position as a trusted multilateral development bank (MDB) and a key player in Africa’s economic development.

AFC President and CEO Samaila Zubairu stated, “This recognition at the highest level validates our financial resilience, robust governance, and global reach. It will enable stronger ties with Asian markets, driving essential investments in economic development, high-value job creation, and Africa’s prosperity.”

Panda Bond Issuance and Asian Market Engagement

As part of its funding strategy, AFC plans to issue its first Panda Bonds in China in 2025, leveraging the AAA rating to attract a broad base of Chinese bond investors. This initiative will enhance AFC’s ability to secure funding for transformative infrastructure projects while further integrating African development into global financial markets.

Banji Fehintola, AFC’s Head of Financial Services, highlighted the Corporation’s commitment to innovation: “This credit rating positions AFC to explore new funding opportunities and deepen our engagement with the Chinese investor community.”

Impressive Financial Performance and Growth

In 2023, AFC posted a 15.3% increase in profits to $329.7 million and a 17.3% rise in total assets to $12.3 billion, surpassing its strategic target of $10 billion in assets. The Corporation's Basel II capital adequacy ratio stood at a robust 34.5%, with liquidity coverage ratios of 161% under normal scenarios and 143% under stress scenarios.

Over the five-year period (2019-2023), AFC's return on capital increased from 7% to 12%, while total assets nearly tripled from $4.5 billion at the end of 2018. These achievements underline AFC’s financial stability and its capacity to execute large-scale infrastructure projects.

Expanding Membership and Strategic Influence

Since its inception in 2007, AFC has grown from two founding member states to include 40 African nations. Between 2023 and June 2024, new members joined, including Ethiopia, Burundi, Sao Tome and Principe, and Swaziland. This expanding membership highlights AFC’s role as a trusted partner in regional development.

CCXI analysts acknowledged AFC’s impact in sectors such as energy, mining, transportation, and industry, noting its significant contributions to climate action and energy transition initiatives. Major projects include:

• The Dangote Refinery in Nigeria, revolutionizing energy supply in West Africa.
• ARISE Integrated Industrial Platforms (ARISE IIP), fostering industrialization across the continent.
• Infinity Energy, a leader in Africa’s renewable energy sector.

Strategic Partnerships with Asian Financial Institutions

AFC’s growing collaboration with Asian financial institutions underscores its global reach. In 2024, AFC secured a $1.16 billion syndicated loan, with major contributions from the Bank of China and Industrial and Commercial Bank of China (ICBC) London Branch. Additionally, the Export-Import Bank of China (CHEXIM) extended a five-year loan facility to bolster trade finance and private-sector initiatives.

Future Outlook

With its enhanced credit rating and innovative funding strategies, AFC is well-positioned to bridge Africa’s infrastructure gaps and deliver sustainable development. The Corporation’s growing influence in global capital markets, particularly in Asia, underscores its role as a catalyst for high-impact investments that support economic growth, job creation, and environmental sustainability across the African continent.