The African Import-Export Bank (AFREXIMBANK) has formally responded to the Fitch Agency’s decision to lower its long-term credit rating from BBB to BBB-,a move that includes a negative outlook. The downgrade, announced on June 4, 2025, has been met with strong opposition from the pan-African bank.

AFREXIMBANK is directly challenging Fitch’s analysis, asserting that it is based on a flawed understanding of the bank’s mandate and operations. The bank emphasizes that it is not involved in any restructuring of debt owed by its member countries. It cites its foundational treaty, signed by 53 African nations, which explicitly prohibits such negotiations.

The bank’s leadership is adamant that the 1993 treaty defines its responsibilities, commitments, and management practices. AFREXIMBANK maintains that it cannot deviate from this legal framework, which is shared with its member states, many of whom are also shareholders.Fitch had previously voiced concerns about the potential restructuring of debt owed to Afreximbank by sovereign borrowers, suggesting this could weaken the bank’s financial position. This is a hypothesis that the institution, led by Benedict Oramah, strongly refutes.

Divergence Over accounting Standards

“This assessment raises crucial legal, institutional and analytical questions that the MAEP vigorously disputes.”

A key point of contention in Fitch’s review is the perceived lack of transparency regarding risky loans. The agency has criticized AFREXIMBANK for its non-performing loan (NPL) rate of 7.1% at the end of 2024, which exceeds the 6% threshold considered acceptable. In response, AFREXIMBANK asserts that its financial statements adhere to international standards, specifically IFRS 9, which governs the classification and treatment of loans, including those classified as non-performing. The bank states that its 2024 financial statements provide detailed information on these aspects, and that these figures have been validated by external auditors.

African Union Body Backs Afreximbank

The African Peer Review Mechanism (MAEP), an organization within the African Union (AU), has also voiced its support for Afreximbank, adding further weight to the bank’s defense. The MAEP criticized Fitch’s decision,calling the classification of Afreximbank’s sovereign exposures to Ghana,South Sudan,and Zambia as “underperforming” loans an error. The AU body argues that these loans are part of interstate cooperation and should not be treated as standard commercial risks.

The MAEP argues that Fitch’s evaluation method fails to account for the unique legal and institutional characteristics of African financing and intra-African advancement. The organization stated that the assumption that Ghana, South Sudan, and Zambia would default on thier obligations to Afreximbank is incompatible with the provisions of the bank’s 1993 Constituent Treaty, to which Ghana and Zambia are founding shareholders and signatories.

The MAEP has called on Fitch to revise its criteria and engage in technical discussions with Afreximbank. This intervention occurs amid growing tensions between some African institutions and international rating agencies. The situation has reignited the debate about the accuracy and fairness of assessments made by these agencies, particularly given their potential impact on borrowing costs, reputation, and access to financing for institutions with downgraded ratings.

For Afreximbank, this public response is aimed at safeguarding its reputation, reassuring its partners, and maintaining confidence in the market. The bank emphasizes that it possesses strong guarantees, a high level of capital, and a risk management capacity that Fitch itself acknowledged in its June 4 report.