KISUMU, Kenya, August 28th-In a continent long dogged by the limitations of external credit rating systems, a series of recent developments is beginning to shift the narrative—and possibly the balance of power.
The affirmation of African Export-Import Bank’s (Afreximbank) A-credit rating with a stable outlook by the Japan Credit Rating Agency (JCR) is being hailed as more than good news for the bank.
It comes at a time when questions over the fairness and impact of international credit ratings on African economies are gaining new momentum.
Kenya’s Credit Upgrade
Kenya, for instance, recently saw an upgrade in its sovereign credit rating. This move, Finance Cabinet Secretary John Mbadi said, reflected the country’s efforts to stabilise its economy and improve fiscal management.
Yet, as Mbadi also hinted, this upgrade comes in the context of a wider struggle African countries have faced with global credit rating agencies often seen as opaque, unaccountable, or even biased in their assessment frameworks.
For many African nations, sovereign ratings have long been a double-edged sword: not only do they shape investor perceptions, but they also directly influence the cost of borrowing and access to capital markets.
A poor rating, whether justified or not, can shut the door on critical financing options—even when economic fundamentals are improving.
Recognising this systemic challenge, the African Union is now developing its own continental credit rating agency. This strategic move aims to provide what many African policymakers and economists see as a more balanced, contextualised, and development-oriented assessment of creditworthiness.
The goal is to counter what has been viewed as an over-reliance on Western-based rating agencies whose methodologies may not always align with African realities, especially regarding political risk, macroeconomic volatility, and institutional resilience. The AU-led agency is expected to incorporate regional insights and broader development indicators that traditional ratings often overlook.
Against this backdrop, Afreximbank’s reaffirmed A- rating from JCR carries significant weight. The Japanese agency praised the bank’s strategic relevance, consistent profitability, robust risk management, and prudent liquidity policies—all in the face of global macroeconomic headwinds and regional economic uncertainty.
“This rating is a testament to the Bank’s resilience and strategic focus, enabling us to mobilise resources to drive trade and development in Africa and the Caribbean,” said Denys Denya, Afreximbank’s Senior Executive Vice President.
Indeed, JCR’s endorsement serves not only as validation of Afreximbank’s fundamentals but also as a broader signal of the growing credibility of African financial institutions on the world stage.
Samurai Bond Success: Proof of Market Confidence
Further validating this shift was Afreximbank’s landmark Samurai bond issuance in 2024, which raised Japanese Yen JPY 81.3 billion (US$530 million) from Japanese institutional investors.
The bond’s success underscores both the appetite for African exposure in non-traditional capital markets and the power of a credible rating to unlock funding.
This marks a key milestone for the Bank’s diversification strategy—demonstrating that African institutions can effectively raise capital outside of the West-dominated financial centres when supported by transparent and rigorous risk frameworks.
As African countries continue to battle external shocks—from climate volatility to global economic shifts—fair and accurate credit assessments will be more critical than ever.
Kenya’s recent rating upgrade, Afreximbank’s affirmation by JCR, and the AU’s move to establish a regional rating system all point toward a broader realisation: Africa must play a larger role in defining how its economic story is told and judged.
It also challenges global investors to re-examine outdated risk perceptions and recognise the maturing of African financial institutions.
In that light, Afreximbank’s stable outlook is more than a feather in its cap—it’s a quiet rebuke to the status quo and a beacon for a more equitable financial future.
