Africa Finance Corporation (AFC), the continent’s largest infrastructure solutions provider, has been assigned an ‘A’ long-term and ‘A-1’ short-term issuer credit rating with a positive outlook by S&P Global Ratings.
The upgrade, marking the highest rating ever awarded to AFC by a major global rating agency, reflects its strong institutional and financial profile and is expected to bolster Africa’s access to diversified capital markets.
The Africa Finance Corporation credit rating decision underscores AFC’s growing stature as a credible and reliable financier of cross-border infrastructure and industrial projects across the continent.
The ratings, according to S&P Global, are underpinned by robust liquidity buffers, disciplined risk management and AFC’s capacity to mobilize private capital where commercial financing alone has proven insufficient.
In its analysis, S&P Global emphasized AFC’s expanded operational scale and its established model for structuring and executing complex transactions.
The ratings agency said these factors reinforce AFC’s leadership role in financing infrastructure sectors central to long-term economic growth in Africa, including energy, transport, telecommunications and natural resources.
“Given its mandate and emphasis on financing critical infrastructure, AFC plays a strategically important role that is not easily replicated by other development finance institutions (DFIs) or commercial lenders,” S&P noted in its published assessment.
Since its inception in 2007, AFC has invested more than US$18.5 billion across 36 African countries, with flagship initiatives such as the Lobito Corridor, a major trade and logistics artery linking Angola, Zambia and the Democratic Republic of Congo, highlighting the corporation’s impact on regional integration and trade.
The upgraded Africa Finance Corporation credit rating is significant for several reasons. An investment-grade rating from a leading global agency enhances an institution’s access to international capital markets, often reducing borrowing costs and attracting a broader class of investors.
For AFC, this means stronger financial resilience and the ability to support larger and more complex projects over the medium-to-long term.
The positive outlook signals S&P Global’s expectation that AFC will continue to broaden its shareholder base, which currently includes 60 entities spanning sovereign states, financial institutions, pension funds and multilateral organizations.
Strengthening its capital position and maintaining sound asset-quality metrics remain central to AFC’s strategy, S&P said.
“This S&P Global rating is a strong validation of AFC’s financial strength, governance, and strategic role in financing Africa’s infrastructure and industrial transformation,” said Samaila Zubairu, AFC’s President and Chief Executive Officer.
“It reflects the institution we have built: a solutions-oriented, execution-driven platform with disciplined balance-sheet management and a track record of delivering complex, high-impact projects.”
The upgraded rating is likely to improve investor confidence in African infrastructure financing, a domain long constrained by the continent’s perceived risk profile and limited access to long-term financing.
A stronger credit rating for a major African financer could incentivize both private and institutional investors to consider African projects that offer development impact alongside commercial returns.
AFC’s portfolio includes investments in industrial platforms, such as the ARISE Integrated Industrial Zones, which help anchor value addition in agro-processing, manufacturing and logistics sectors, critical for diversifying African economies.
It also holds stakes in major mining projects, including the Kamoa-Kakula copper complex in the Democratic Republic of Congo, one of the world’s highest-grade copper mines.
The ratings assessment also highlighted AFC’s operational resilience, citing strong liquidity ratios even under stressed market conditions.
As of end-2024 data, S&P reported AFC’s 12-month liquidity ratio at 3.1x and six-month ratio at 5.5x, significantly above peer levels, indicating ample liquid assets to cover near-term obligations without disrupting project disbursements.
The ratings upgrade comes at a time when several African economies are navigating complex global economic headwinds, including tightening external financing conditions and currency volatility.
Recently, sovereign ratings, such as those for the Democratic Republic of Congo, have also seen positive outlook adjustments due to reforms and stronger fiscal performance.
However, many African nations continue to face challenges in securing investment-grade sovereign status, with only a handful meeting the criteria.
In this context, the elevated Africa Finance Corporation credit rating stands out as a testament to the institution’s financial discipline and strategic importance to Africa’s infrastructure development agenda.
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