Afreximbank to appoint new president following credit downgrade

The African Export-Import Bank (Afreximbank) is preparing to appoint a new president this Saturday amid increased scrutiny following a recent credit rating downgrade by Fitch Ratings. The downgrade cited concerns over the bank’s risk management and high solvency risks due to loans extended to countries in default.

Nigerian banker Benedict Oramah, who has led Afreximbank since 2015, will step down after nearly a decade at the helm. Under his leadership, the bank’s assets grew from under $6 billion in 2014 to $40 billion by the end of last year, marking a period of rapid expansion.

However, Fitch’s downgrade to a rating just above junk status has raised questions about the bank’s lending practices and financial stability. The agency highlighted “weak risk management policies” and the impact of loans to countries that have defaulted on their obligations as key concerns.

Afreximbank has publicly rejected Fitch’s assessment as erroneous, stating that the bank’s financial position remains strong and that the downgrade does not reflect its true creditworthiness.

The incoming president will face the challenge of restoring confidence in the institution and addressing Fitch’s criticisms while continuing to support Africa’s trade finance needs.

Shareholders will convene in Abuja this week to select the new leader who will guide the bank through a critical period for African trade finance and economic development.

The leadership change comes at a time when Afreximbank plays an increasingly important role in facilitating intra-African trade and investment, especially as the continent pursues greater economic integration.