LAGOS, Oct 6 (The African Portal) – The Africa Finance Corporation (AFC) has had its long-term issuer credit rating of A3 affirmed by Moody’s Ratings, maintaining its position as one of the highest-rated investment-grade institutions on the continent. The rating, first assigned in 2014, has now been upheld for more than a decade, with a stable outlook.
Moody’s also reaffirmed AFC’s short-term issuer rating at P-2, noting that the Corporation’s strong liquidity and asset quality continue to offset elevated risks in several African markets where it operates.
“Despite elevated country risk in several of AFC’s countries of operation and the low average rating of its shareholder base, the credit profile is supported by a sound liquidity buffer backed by high-quality treasury assets and resilient asset performance,” Moody’s said in its latest report.
The agency credited AFC’s performance to “effective credit protections that mitigate potential risks” and highlighted its adherence to strict prudential guidelines. In the 2024 financial year, the Corporation recorded US$1 billion in total revenue — its strongest results to date — with total assets rising 16.7% to US$14.41 billion. It also maintained a Capital Adequacy Ratio of 33.6% and a Liquidity Coverage Ratio well above regulatory thresholds.
Moody’s decision allows AFC to continue borrowing at relatively low cost, helping it mobilise funding for major infrastructure projects across Africa. Recent investments include the Lobito Corridor railway, linking Angola, the Democratic Republic of Congo and Zambia, and a US$150 million investment in the Kamoa-Kakula Copper Complex in the DRC — Africa’s largest copper producer.
AFC President and CEO Samaila Zubairu described the rating reaffirmation as “a strong testament to AFC’s financial strength and resilience, even amid global headwinds.”
“It reinforces our ability to consistently access long-term capital at competitive rates to deliver on our mandate to finance transformational infrastructure projects that integrate Africa and enable its industrialisation,” he said.
Moody’s analysts also commended AFC’s diversified funding strategy, which includes green bonds, sukuk, and other ESG-linked instruments. The agency rated AFC’s funding structure at “a” and its liquidity buffer at “aaa”, citing a conservative approach and strong high-quality liquid assets relative to peers.
In recent months, AFC has expanded its market presence with a US$500 million perpetual hybrid bond, a US$400 million Shariah-compliant Commodity Murabaha, and a US$1.5 billion syndicated loan that drew wide participation from investors in the Middle East, Africa, Asia and Europe.
Analysts say the rating reaffirmation underscores global investor confidence in AFC’s governance, financial discipline, and strategic role in advancing Africa’s infrastructure and industrial development.
