Lagos, Nigeria – The Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has achieved a major milestone by securing an AAA domestic credit rating with a stable outlook from China Chengxin International Credit Rating Co. Ltd (CCXI).
This top-tier rating positions AFC to access China’s expansive domestic debt capital markets, unlocking new investment opportunities to drive industrialisation and critical infrastructure development across Africa.
CCXI analysts praised AFC’s robust financial framework, stating: “AFC implements a sound risk management framework and maintains a prudent risk appetite. Its insured loan portfolio effectively mitigates the credit risk of its projects.” The recognition underscores AFC’s solid strategic positioning as a leading Multilateral Development Bank (MDB) in Africa.
Strengthening Ties with China
With this rating, AFC plans to explore its first panda bond issuance in the near future, engaging the Chinese bond investor base in 2025 and beyond. Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, highlighted this as a pivotal step in AFC’s capital-raising strategy. “This initiative underscores AFC’s commitment to leveraging global financial markets to support transformative infrastructure projects,” Fehintola stated.
President and CEO of AFC, Samaila Zubairu, called the AAA rating a validation of AFC’s financial resilience and global reach. “This endorsement solidifies our ability to deepen ties with Asian markets, driving investment in economic development, high-value job creation, and Africa’s prosperity,” Zubairu said.
Exceptional Financial Performance
The AAA rating reflects AFC’s financial strength and disciplined risk management. In 2023, AFC posted a 15.3% increase in profits to $329.7 million and a 17.3% rise in total assets, reaching $12.3 billion. The Corporation also maintained a robust Basel II capital ratio of 34.5% and strong liquidity coverage ratios of 161% under normal scenarios and 143% in stress scenarios.
CCXI analysts noted AFC’s consistent delivery on strategic targets, with the Corporation’s total assets tripling from $4.5 billion in 2018 to $12.3 billion in 2023. The return on capital rose from 7% to 12% over the same period, reflecting its efficient use of resources to drive development.
Expanding Membership and Influence
Since its inception in 2007 with just two founding members, AFC has significantly expanded its membership base, welcoming countries such as Ethiopia, Burundi, Sao Tome and Principe, and Swaziland between 2023 and 2024. The Corporation has also made impactful investments across critical sectors, including energy, mining, transportation, and industry.
Notable projects include the Dangote Refinery in Nigeria, which is transforming Africa’s energy landscape; ARISE Integrated Industrial Platforms, driving industrialisation; and Infinity Energy, a renewable energy platform leading Africa’s energy transition.
Strategic Collaborations with Asia
AFC has forged strong partnerships with Asian financial institutions. In 2024, it secured a landmark $1.16 billion syndicated loan involving the Bank of China and the Industrial and Commercial Bank of China (ICBC) London Branch. Additionally, the Export-Import Bank of China (CHEXIM) provided a five-year loan facility to enhance trade finance and support private sector projects.
The Corporation’s expanding presence underscores its strategic focus on bridging Africa’s infrastructure needs with global capital markets, fostering sustainable development outcomes.
As AFC continues to diversify its funding sources and strengthen global partnerships, this milestone rating sets the stage for even greater contributions to Africa’s economic growth and industrial transformation.
