The Africa Finance Corporation (AFC), a leading investor in African infrastructure, has secured an AAA domestic credit rating with a stable outlook from China Chengxin International Credit Rating Co. Ltd (CCXI). This development marks a pivotal moment as AFC deepens its engagement with China’s domestic debt capital markets to diversify funding sources and accelerate infrastructure development across Africa.
The rating, which reflects AFC’s robust financial profile and disciplined risk management approach, paves the way for the Corporation to explore innovative financing options, including the issuance of panda bonds in the near future. Panda bonds — yuan-denominated debt instruments sold by foreign entities within China — are poised to be a cornerstone of AFC’s capital-raising strategy in 2025 and beyond.
“This recognition at the highest level validates our financial resilience, robust governance, and global reach,” said Samaila Zubairu, President and CEO of AFC.“The AAA rating allows us to forge stronger ties with Asian markets, enabling investments that drive economic development, job creation, and prosperity in Africa.”
Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, echoed these sentiments, emphasizing that tapping China’s bond market reflects AFC’s commitment to leveraging global financial markets for transformative infrastructure projects.
Founded in 2007 with a mandate to address Africa’s infrastructure deficit, AFC has consistently demonstrated financial strength. The Corporation recorded a 15.3% increase in profits in 2023, reaching $329.7 million, and expanded its total assets by 17.3% to $12.3 billion — surpassing its $10 billion target. Its Basel II capital adequacy ratio of 34.5% underscores its financial resilience, while liquidity coverage ratios of 161% under normal scenarios and 143% under stress further highlight the Corporation’s robust fiscal health.
CCXI analysts praised AFC’s performance, noting that its return on capital has grown from 7% in 2018 to 12% in 2023. Total assets have nearly tripled over the past five years, reinforcing the Corporation’s capacity to drive impactful infrastructure investments.
AFC’s engagement with Chinese financial institutions is not new. In 2024, the Corporation secured a $1.16 billion syndicated loan with significant contributions from the Bank of China and the Industrial and Commercial Bank of China (ICBC) London Branch. Additionally, a five-year facility from The Export-Import Bank of China (CHEXIM) further underscored AFC’s focus on trade finance and private sector development.
These collaborations highlight AFC’s evolving role as a bridge between Africa’s infrastructure needs and global capital markets, with China emerging as a key partner in this mission.
The Corporation’s influence extends across critical sectors, including energy, mining, transportation, and industry. Landmark projects such as the Dangote Refinery in Nigeria, ARISE Integrated Industrial Platforms (ARISE IIP), and Infinity Energy underscore AFC’s contributions to industrialization and energy transition across the continent.
Moreover, AFC’s ability to attract new member states, including Ethiopia, Burundi, and Swaziland, demonstrates its expanding reach and credibility. By 2024, AFC had 44 member countries and had invested over $15 billion in 36 nations, addressing essential services in power, natural resources, heavy industry, transport, and telecommunications.
While AFC’s pivot to China offers significant opportunities, it also underscores a broader shift in Africa’s infrastructure financing landscape. Increasing reliance on Asian markets for funding raises questions about debt sustainability and strategic alignment.
As AFC positions itself as a vital player in global financial markets, the investor ’s ability to balance diversified funding with the unique African infrastructure needs will be key to sustaining its role as a catalyst for development.