By Ayomide Otitoju
Africa Finance Corporation (AFC), Africa’s leading infrastructure solutions provider, has had its long-term issuer credit rating of A3 reaffirmed by Moody’s Investors Service, maintaining the rating first assigned in 2014 for over a decade. The rating comes with a stable outlook, while AFC’s short-term issuer rating was affirmed at P-2, highlighting the Corporation’s status as one of the highest-rated investment-grade institutions in Africa.
Moody’s noted that AFC’s credit profile is supported by a robust liquidity buffer, resilient asset performance, and effective credit protections, despite elevated country risk in some operating regions and a low average shareholder rating.
The affirmation reflects AFC’s strong financial performance in FY2024, during which it surpassed $1 billion in revenue and grew total assets by 16.7% to $14.41 billion. The Corporation maintained a Capital Adequacy Ratio of 33.6%, improved its Cost-to-Income Ratio to 17.3%, and recorded Liquidity Coverage Ratios of 194% and 191% under normal and stress conditions, well above the 100% threshold.
“The reaffirmation of our A3/P-2 ratings for the eleventh consecutive year is a testament to AFC’s financial resilience amid global headwinds,” said Samaila Zubairu, President & CEO of AFC. “It strengthens our ability to access long-term capital at competitive rates to fund transformational infrastructure projects that integrate Africa and drive industrialisation.”
Recent milestones demonstrating AFC’s market strength include a US$500 million perpetual hybrid bond, a US$400 million Shariah-compliant Commodity Murabaha, and a landmark US$1.5 billion three-year syndicated loan—originally launched at US$1.3 billion—attracting a global consortium of lenders from Africa, the Middle East, Asia, and Europe.
Moody’s also praised AFC’s diversified funding strategy, including green bonds, private placements, and ESG-linked instruments, as well as its conservative liquidity policy, which positions the Corporation strongly relative to peers.
These achievements underscore investor confidence in AFC’s credit profile and its strategic role in financing Africa’s infrastructure and industrialisation agenda, including projects like 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, one of the world’s largest and most sustainable copper producers.
