The Africa Finance Corporation (AFC) has maintained its position among the continent’s most trusted financial institutions after Moody’s Ratings reaffirmed its long-term issuer rating of A3 with a stable outlook, marking the eleventh consecutive year the Corporation has held this investment-grade status.
Moody’s also confirmed AFC’s short-term issuer rating at P-2, noting that the institution’s “sound liquidity buffer backed by high-quality treasury assets and resilient asset performance” continue to underpin its credit stability despite rising risks across several African markets.
The agency’s latest review praised AFC’s prudent financial management, effective credit protections and diversified funding strategy, which have helped the Corporation sustain one of the lowest borrowing costs of any African issuer.
AFC’s financial results for FY2024 underline this resilience. The organisation surpassed $1 billion in total revenue for the first time, while total assets grew by 16.7% to $14.41 billion. Its Capital Adequacy Ratio stood at 33.6%, comfortably above regulatory thresholds, with a cost-to-income ratio of 17.3% and liquidity coverage ratios of 194% and 191% under normal and stress conditions respectively — nearly double its own 100% minimum target.
Moody’s noted that this consistent performance reflects “AFC’s strict adherence to its prudential guidelines” and described its liquidity resources buffer as “aaa”, citing the Corporation’s conservative treasury policy and robust liquidity relative to peers.
AFC President and CEO Samaila Zubairu said the reaffirmation was “a strong testament to AFC’s robust financial strength and resilience, even amidst global headwinds”. He added: “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.”
Moody’s analysts also commended the Corporation’s ongoing efforts to diversify its funding base across geographies and instruments, including green bonds, sukuk, and ESG-linked structures. “We assess AFC’s quality of funding structure at ‘a’, indicating the corporation’s demonstrated capacity to borrow at varying maturities and from different sources to help smooth its redemption profile,” the agency said.
Recent fundraising milestones have further strengthened that profile. In the past year alone, AFC has issued a $500 million perpetual hybrid bond, a $400 million Shariah-compliant Commodity Murabaha, and a landmark $1.5 billion three-year syndicated loan — upsized from $1.3 billion following strong investor demand. The transaction drew participation from lenders across the Middle East, Africa, Asia and Europe, signalling continued global confidence in the Corporation’s creditworthiness.
These funds have supported major infrastructure and industrial projects, including AFC’s $150 million investment in the Kamoa-Kakula Copper Complex in the Democratic Republic of Congo — one of the world’s most sustainable copper operations — and its concession for the Lobito Corridor railway linking Angola, Zambia and the DRC.
Against an uncertain global backdrop, AFC’s ability to maintain a strong rating while expanding its balance sheet highlights both its strategic importance and its operational discipline. As Moody’s noted, “the credit profile is supported by a sound liquidity buffer and resilient asset performance” — qualities that continue to make AFC one of the few African institutions to consistently attract long-term global capital.