Afreximbank receives top rating from China, boosting African development

 

 Africa Export-Import Bank (Afrieximbank) Senior Executive Vice President Denys Denya. [Courtesy]

The African Export-Import Bank (Afreximbank) has received a significant boost with a top ‘AAA/Stable’ rating from China Chengxin International Credit Rating Co., Ltd (CCXI). The pan-African lender said this marks a “landmark achievement for the bank and has significant implications for African countries.”

CCXI, in its 2024 Credit Rating Report, recognised Afreximbank's "very high strategic positioning; sound risk management system; agility and adaptability in business generation, robust profitability and prudent liquidity management" as key strengths.  

"CCXI recognises Afreximbank’s strategic relevance to the (African) continent and its ability to execute on its strategic goals and mandate," the report stated.

This top rating will enhance Afreximbank's ability to mobilise capital in the Chinese market, enabling it to further support African trade and development.

The bank plans to leverage this strong credit standing to tap into the Chinese Panda bond market, expanding its funding base and facilitating increased trade and investment between China and Africa.

"This is a significant endorsement that will enable Afreximbank to play an even more crucial role in supporting African economic growth and development," said Denys Denya, Afreximbank’s Senior Executive Vice President.

Afreximbank has demonstrated strong financial performance in recent years, achieving a return on average equity of 11 per cent and maintaining a robust capital adequacy ratio.

This strong financial foundation has enabled the bank to effectively support African economies and contribute to their development.

The AAA rating from CCXI is a testament to Afreximbank's crucial role in supporting African economic development and its growing stature as a key player in the global financial landscape. It is expected to have a positive impact on African countries by facilitating increased trade, investment, and economic growth across the continent.

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