The Executive Vice President, Governance, Legal & Corporate Services at the African Export-Import Bank (Afreximbank), Dr. George Elombi, has explained why Fitch Ratings’ assessment of the bank’s loans to African nations remains a “contradiction” from the bank’s perspective.
Elombi stressed that Fitch’s rating was allegedly a “contradiction” because, despite its negative outlook, the same report predicted that within 18 months to two years, those same loan obligations would begin to be repaid.
Elombi made these latest remarks at the bank’s 32nd Annual Meetings Plenary Session on Thursday, titled “Strengthening Institutional Resilience for Africa’s Growth and Prosperity: The Importance of the Preferred Creditor Status for Financing African Growth and Prosperity,” moderated by Mr. Anver Versi, Editor and Journalist of New African and African Banker magazines.
The development comes days after Fitch Ratings downgraded Afreximbank’s Long-Term Issuer Default Rating (IDR) to ‘BBB-‘ from ‘BBB’, with a negative outlook.
“The increased credit risk stems from the rise in the bank’s non-performing loans (NPLs) ratio as calculated by Fitch, which exceeded the 6% ‘high risk’ threshold outlined in Fitch’s criteria at end-2024.
“The revision of risk management to ‘weak’ reflects low transparency in the recent reporting of loan performance relative to multilateral development bank peers, and Fitch’s definition of NPLs differs from the bank’s approach, which makes use of flexibilities offered by IFRS 9,” Fitch stated.
Nairametrics previously reported that on June 10, 2025, Afreximbank challenged Fitch Ratings’ decision to revise its outlook on the institution to negative, asserting that its financial position remains robust and its legal framework protects it from the risks cited by the rating agency.
In a statement, the bank said it fully complies with International Financial Reporting Standards, including IFRS 9, which guides the classification of loan performance. These practices, it stressed, are detailed in its 2024 financial statements and supported by an external audit.
Afreximbank Maintains Fitch Ratings Is Contradictory
When asked to comment on Fitch’s rating, which pointed out “non-performing” loans to some African nations such as Zambia, Ghana, and South Sudan, Elombi maintained that Fitch uses its own methodology, which Afreximbank has no issue with.
He added that Fitch was advised to clarify that it applied its own methodology in arriving at its decision on Afreximbank’s loans.
“Afreximbank, like most institutions, applies international financial standards, and the rule is very clear. The loans could be in difficulty, but they are not impaired. Applying that standard gives a slightly different outcome from Fitch’s methodology,” he said.
“To that extent, we really had no difficulty with Fitch. We asked them to make it clear in their report that they applied their own methodology, which any professional can review. Give it to 20 accountants, and you might get three or four different outcomes.”
“So that’s right and honest. We simply requested that they state the methodology used. The different results stem from different methodologies, and both are internationally recognized,” he added.
He highlighted that while Fitch maintained that the states (African countries) would not recognize the treaty underpinning Afreximbank’s loans and other financial obligations, it contradicted itself by predicting that those loan obligations will be settled in the near term.
“There is a contradiction,” he said. “If you read the Fitch report carefully, it says they believe that within the near term—18 months to two years—those obligations will begin to be repaid. So if repayment is expected soon, there is little to worry about regarding impairment. That’s why the question of standards arises.”
“If Fitch had presented it(the report) professionally, allowing every professional to apply their judgment, some would be more critical of Afreximbank, while others would ignore what Fitch is saying. That’s why ratings sometimes go up and sometimes come down.”
He urged Fitch to remain “professional,” adding that this is not the first time Afreximbank has increased lending to African countries during difficult times.
Afreximbank in a Better Position Than Multilaterals
Speaking further, Elombi said it is “most unlikely” that member states would refuse to honor the treaties establishing Afreximbank.
“Why would Fitch be worried that African governments seek to protect an African institution they created and in which they invested? What else should governments be doing than protecting their own institutions?” he asked.
He maintained that the bank is in a better position than several multilateral institutions, highlighting that the bank’s shareholders include African states, the African private sector, and non-African investors.
What You Should Know
Nigeria is one of Afreximbank’s major shareholders.
- The country was among the largest beneficiaries of the bank, accounting for about 60% of its US$30 billion funding of the energy sector in Africa as of 2024.
- Afreximbank has contributed to Nigeria’s energy and industrial transformation, investing heavily in projects such as the Dangote Refinery and the Port Harcourt Refinery.
- These investments are part of a broader strategy to make the Gulf of Guinea a major refining hub, reducing Africa’s dependence on petroleum imports.
- The bank also supports the establishment of an Africa Energy Bank in Abuja to strengthen the continent’s energy security.
Furthermore, Afreximbank has supported Nigeria’s fertiliser production, enabling the country to become the continent’s leading producer with an annual output of 7.5 million metric tonnes.
The bank is also involved in supporting Nigeria’s creative industry through credit facilities, capacity building, and market access initiatives aimed at expanding the country’s cultural exports.
