S&P Global Ratings assigned Africa Finance Corporation a long term issuer credit rating of ‘A’ and short term rating of ‘A-1’ with a Positive Outlook on Wednesday, marking the highest assessment the pan African infrastructure lender has received from any major global ratings agency.
The ratings reflect what the agency describes as strong institutional and financial risk management at AFC (Africa Finance Corporation), underpinned by robust liquidity reserves and a proven capacity to mobilise private capital for complex infrastructure projects across the continent. The assessment positions AFC among the highest rated investment grade African financial institutions, potentially reducing borrowing costs and expanding market access.
S&P analysts highlighted AFC’s ability to structure and execute transactions in sectors where commercial financing typically falls short. The agency noted the institution’s strategic importance in delivering infrastructure assets that other development finance institutions or commercial lenders find difficult to replicate.
Since its establishment in 2007, AFC has deployed approximately 18.5 billion US dollars across 36 African countries. Investment portfolios span energy, transport and logistics, natural resources, heavy industry, telecommunications and technology sectors.
Major projects include the Lobito Corridor, a regional trade route connecting Angola, Zambia and the Democratic Republic of Congo (DRC). The corporation also backs the Kamoa Kakula copper complex in DRC, recognised as one of the world’s highest grade copper mining operations.
AFC President and Chief Executive Officer Samaila Zubairu told Reuters the rating validates the institution’s financial strength and governance framework. He suggested it should translate into better market access and lower funding costs over time, benefiting both AFC and its clients.
The agency referenced AFC’s growing continental footprint and expanded operational model. Analysts emphasised the lender’s track record in combining development impact with disciplined capital management, pointing to successful partial exits from projects including ARISE industrial platforms and Ghana’s Takoradi Port.
S&P credited AFC with maintaining strong asset quality despite operating in high risk geographical areas. The institution employs credit enhancement tools including default insurance to mitigate exposure.
Funding sources remain diversified. Capital markets account for roughly 36 per cent of total financing, while banks and development finance institutions provide the remaining 64 per cent. The corporation’s 60 shareholders include sovereign entities, financial institutions, pension funds and multilateral organisations.
The Positive Outlook signals S&P’s expectation that AFC will continue broadening its shareholder base, strengthen capital positions and sustain strong liquidity metrics under its medium term strategy. Liquidity reserves consist primarily of highly rated government bonds, cash holdings and term deposits with top tier banks.
AFC holds additional ratings from other agencies: A3 with Stable Outlook from Moody’s Ratings, A+ Stable from Japan Credit Rating Agency, and AAA ratings from both S&P Ratings China and China Chengxin International Credit Rating.
The new S&P assessment arrives as African sovereigns face refinancing pressures amid elevated global interest rates. Rating trajectories across the continent remain mixed, with agencies distinguishing between economies demonstrating fiscal discipline and those still managing debt stress.
AFC’s structured model as a public private partnership enables access to diverse capital pools. The institution has 48 member countries and positions itself as a catalyst for pragmatic infrastructure investment addressing critical development needs across Africa.
