S&P Global Ratings on Wednesday assigned Africa Finance Corporation a positive outlook with a long-term issuer credit rating of ‘A’ and a short-term rating of ‘A-1’, the highest rating ever received by a pan-African infrastructure financier from a major global rating agency.
The rating reflects what the agency describes as African Finance Corporation’s strong institutional and financial risk management, supported by strong liquidity reserves and a proven ability to mobilize private capital for complex infrastructure projects across Africa. This rating places AFC among the highest-rated investment-grade African financial institutions, potentially reducing borrowing costs and increasing market access.
S&P analysts emphasized AFC’s ability to structure and execute deals in areas where commercial finance typically falls short. The agency noted the agency’s strategic importance in providing infrastructure assets that are difficult to imitate by other development and commercial financial institutions.
Since its founding in 2007, AFC has invested approximately US$18.5 billion in 36 African countries. The investment portfolio spans the energy, transportation, logistics, natural resources, heavy industry, telecommunications and technology sectors.
Key projects include the Lobito Corridor, a regional trade route connecting Angola, Zambia and the Democratic Republic of Congo (DRC); The company also supports the Kamoa-Kakula copper mine in the Democratic Republic of the Congo, recognized as one of the world’s finest copper mining operations.
AFC President and CEO Samaira Zubair told Reuters the rating was a testament to AFC’s financial strength and governance framework. He suggested that this should lead to improved market access and lower funding costs in the long term, benefiting both AFC and its customers.
The agency noted the expansion of AFC’s continental reach and expansion of its operating model. Analysts highlighted the lender’s track record of combining development impact with disciplined capital management, noting its success in partially exiting projects such as the ARISE industrial platform and Takoradi Port in Ghana.
S&P assessed that AFC maintains strong asset quality despite operating in a high-risk geographic region. The agency employs credit enhancement tools such as default insurance to reduce risk.
Funding sources remain diverse. Capital markets account for approximately 36 percent of total financing, with banks and development finance institutions providing the remaining 64 percent. The company’s 60 shareholders include sovereign bodies, financial institutions, pension funds and multilateral organizations.
The positive outlook reflects S&P’s expectation that AFC will continue to expand its shareholder base, strengthen its capital position and maintain strong liquidity metrics based on its medium-term strategy. Liquidity reserves primarily consist of highly rated government bonds, cash holdings, and term deposits with top banks.
AFC holds additional ratings from other agencies. A3 with Stable Outlook by Moody’s Ratings, A+ Stable by Japan Credit Rating Agency, and AAA ratings by S&P Ratings China and China Chengxin International Credit Ratings.
S&P’s new ratings come as African countries face refinancing pressure amid rising global interest rates. Rating trends across the continent remain mixed, with government agencies distinguishing between economies that are demonstrating fiscal discipline and those that are still managing debt stress.
AFC’s structured model as a public-private partnership provides access to a diverse pool of capital. The agency has 48 member countries and has established itself as a catalyst for practical infrastructure investments that address critical development needs across Africa.
