Afreximbank faces the risk of another credit rating downgrade, pushing it toward funding from “friendly” countries like China, its chief economist said on Wednesday.
Fitch Ratings recently cut Afreximbank’s rating to BBB-, just above “junk” status, due to high credit risks and weak risk-management policies.
The agency warned that a further downgrade could follow if the bank restructures loans to countries such as Ghana and Zambia, where it faces potential losses.
At the bank’s annual meeting in Abuja, chief economist Yemi Kale said Afreximbank might seek financing from partners who better understand its market, avoiding complex hurdles.
“We don’t have to go to the euro market; we have a good relationship with China,” Kale explained, highlighting alternative funding options.
He also noted the bank could increase cash inflows from African countries if necessary, softening the impact of a downgrade on borrowing costs.
The meeting comes amid tense negotiations with Zambia and Ghana over loan restructuring, with both countries pushing for changes.
Afreximbank insists on its status as a multilateral lender with “preferred creditor status,” protecting it from losses on member loans.
But Ghana and Zambia’s insistence on restructuring threatens to challenge this protection, stirring uncertainty over the bank’s financial future.
As the bank selects a new president, these disputes and rating concerns underscore the fragile balance Afreximbank must navigate in a shifting economic landscape.