The African Continental Free Trade Area (AfCFTA) Secretariat has issued a strong statement reaffirming its confidence in the African Export-Import Bank (Afreximbank) following its recent downgrade by Fitch Ratings.
The downgrade, which lowered the Bank’s long-term foreign currency rating from ‘BBB’ to ‘BBB-’ with a negative outlook, has drawn sharp criticism from the AfCFTA leadership.
In a press release issued on Monday, the Secretariat expressed deep concern over what it described as a misrepresentation of Afreximbank’s role, governance, and legal foundation by the global rating agency.
Secretary-General of the AfCFTA Secretariat, H.E. Wamkele Mene, noted that the downgrade not only undermines a key pillar of Africa’s trade and development architecture but also sets a troubling precedent in how African multilateral financial institutions (AMFIs) are perceived and assessed on the global stage.
“Afreximbank is not only a cornerstone of Africa’s trade and development architecture, but also an essential instrument for the delivery of the AfCFTA,” Mene said.
“It is deeply concerning that, at a time when Africa is mobilising its institutions to implement its most ambitious integration effort, such a rating action would be issued based on assumptions that fail to account for the Bank’s legal foundation and institutional mandate.”
The AfCFTA Secretariat noted that Afreximbank’s work extends across multiple strategic areas critical to Africa’s development, including trade and project finance, support for industrial value chains, and the promotion of local currency payments through the Pan-African Payment and Settlement System (PAPSS). These interventions are integral to the operationalisation of the AfCFTA and the continent’s long-term economic transformation, the statement said.
The Secretariat criticized Fitch’s methodology, particularly the treatment of sovereign exposures to shareholder states as potential default risks.
It argued that such classification disregards international financial norms and ignores the Bank’s Treaty-based status, which grants it Preferred Creditor Status (PCS) among its 53 African member states.
The downgrade, the Secretariat argued, failed to distinguish between genuine financial risk and the intergovernmental commitments that underpin institutions like Afreximbank.
“Rather than penalising institutions that are driving transformative change, the international community should recognise and support Afreximbank’s mission as a pillar of Africa’s economic resilience and integration,” the statement read.
The AfCFTA Secretariat warned that assessments of African institutions must take into account the unique governance frameworks and mandates under which they operate. “Downgrades that fail to account for the political will and regional solidarity underpinning these initiatives risk reinforcing outdated narratives of African risk,” it said.
The statement concluded with a call for investors and financial stakeholders to maintain their confidence in Afreximbank’s financial strength, institutional resilience, and its pivotal role in realising the goals of the AfCFTA.
Background:
Established under a Treaty ratified by African Union member states, Afreximbank has played a crucial role in enabling trade, financing infrastructure, and mitigating risk across Africa.
Its instrumental support during crises such as the COVID-19 pandemic and ongoing trade facilitation projects has earned it recognition as a trusted development partner on the continent.
About AfCFTA:
The African Continental Free Trade Area (AfCFTA) is a flagship initiative of the African Union’s Agenda 2063. Since its enforcement in 2019 and the start of trading in 2021, the agreement aims to deepen economic integration among Africa’s 55 member states, covering a market of over 1.3 billion people.
It is the largest free trade area in the world by number of participating countries.
For further information, the public is encouraged to contact the AfCFTA Secretariat’s communications team.