Adesun Kehinde 
Afreximbank has reaffirmed that it is not participating in debt restructuring negotiations related to any of its member countries.
The reaffirmation is to challenge Fitch Rating to rectify its outlook to negative, insisting its financial position remains strong and its legal structure shields it from the risks highlighted by the agency.
“As cited in the ratings report, dated 4 June 2025, Fitch’s definition of NPLs differs from the Bank’s approach, which makes use of forward-looking information,” Afreximbank stated.
“It is important to note that Fitch acknowledges Afreximbank’s financial resilience, highlighting that the bank operates with a high level of collateral and credit risk mitigants and has already taken relatively large provisions on some sovereign exposures, which would reduce any potential further negative financial impact for the bank,” the bank noted.
In the report, Fitch also acknowledged Afreximbank’s strong capitalization including its “strong equity to assets and guarantees ratio” and “excellent internal capital generation.” It also noted that the Bank’s concentration risk is low and liquidity assessment that reflects the Bank’s strong quality of treasury assets.
“The Bank believes that these factors reinforce the overall soundness of the Bank’s risk management framework. Fitch’s ‘negative outlook’ decision, which it says reflects the risk that the debt owed to Afreximbank by some of its sovereign borrowers may be restructured, is hinged on the erroneous view, in some quarters, that the treaty establishing Afreximbank, executed by its 53 participating African states, can be violated by the Bank without consequences,” the bank argued.
It further clarified that the Bank establishment agreement is a treaty entered into by, and among, all participating states and between the participating states and the Bank.
“Accordingly, Afreximbank would like to reaffirm that it is not participating in debt restructuring negotiations related to any of its member countries. To do so would be inconsistent with the Bank establishment treaty. The treatment of its loans and other activities is governed by the treaty and not by classifications created outside its framework.
“Afreximbank’s financial resilience, robust governance and unwavering commitment to excellence, and to Africa, are critical to the delivery of its mandate. The Bank remains committed to supporting its member countries in navigating their economic challenges while promoting trade-led growth, economic development and general macroeconomic stability,” the bank stated.
