Latest news with #BenedictOkeyOramah
Arabian Post
09-06-2025
- Business
- Arabian Post
Afreximbank downgrade dispute raises questions on loan categorisation
African Union's African Peer Review Mechanism has challenged Fitch Ratings' downgrade of the African Export‑Import Bank, arguing the move rests on a misinterpretation of its sovereign loan portfolio. On 4 June, Fitch lowered Afreximbank's long‑term foreign‑currency issuer rating from BBB to BBB‑—a notch above junk—with a negative outlook. The agency attributed the downgrade to elevated credit risk, citing an estimated non‑performing loan ratio of 7.1 %, primarily due to sovereign exposures to Ghana, South Sudan and Zambia classified as NPLs. The APRM asserts that Fitch's classification is flawed and inconsistent with Afreximbank's own disclosure of an NPL ratio of 2.44 % as of end‑March. The AU‑established body emphasises the bank's status as a multilateral lender created under a 1993 treaty, which binds member governments—including Ghana and Zambia—as signatories, shareholders and founding members. APRM contends such loans are grounded in intergovernmental cooperation rather than standard commercial terms, so treating them as NPLs misrepresents their nature. Fitch defended its methodology, stating that its supranational rating decisions adhere to globally consistent and publicly available criteria, and highlighting that their analysis clearly identified rating drivers and sensitivities. The agency maintains sovereign exposures showing delayed repayments meet its threshold for classification as non‑performing, irrespective of legal structures or treaties. In that sense, the downgrade aligns with accepted analytical standards. ADVERTISEMENT APRM's critique zeroes in on that threshold. It argues that sovereign repayment negotiations are routine diplomatic engagements, not signs of default. It remains concerned that Fitch's decision conflates financial dialogue with credit impairment. The body has formally called on Fitch, Afreximbank and other African institutions to convene technical consultations and reassess the rating, emphasising the importance of contextually intelligent credit assessments. Beyond the immediate dispute, this episode resonates with a broader continental debate over the relevance and fairness of global credit‑rating frameworks applied to African multilaterals. Africa's longstanding concerns that Western rating methodologies fail to grasp local realities and may unfairly inflate borrowing costs have sparked momentum for alternative mechanisms. Among these, an Africa‑led credit‑rating agency is under development, envisaged to begin operations by September 2025, aimed at providing sovereign ratings that reflect regional economic and institutional contexts. Central to the debate is Afreximbank's evolving lending strategy. Under outgoing president Benedict Okey Oramah, the Cairo‑based lender has aggressively expanded its footprint, increasingly financing private sector projects across the continent and taking calculated sovereign exposure. Supporting growth in under‑served markets like Zimbabwe and Nigeria, the bank grew its asset base from around US$7 billion in 2015 to approximately US$40 billion in 2024, with deposits rising to US$37 billion. That growth has attracted scrutiny. Fitch has highlighted what it sees as elevated concentration of corporate and sovereign risk, pointing to an NPL ratio that exceeds its internal threshold. Observers note that up to 92 % of Afreximbank's lending is directed at commercial businesses, and certain sovereign loans carry interest rates as high as 6.875 % over benchmark rates—much higher than traditional development finance institutions. Proponents of the APRM's position, including lead credit‑ratings expert Misheck Mutize, argue that supplementary indicators such as capital adequacy, collateral density and profitability should carry mitigating weight. Mutize points to a strong equity ratio of 19 %, risk‑weighted capital at 21 %, internal capital generation through profits, and loan collateral cover for 84 % of the portfolio. These factors, he suggests, are downplayed in the rating downgrade despite being explicitly acknowledged in Fitch's own analytic framework. He warns that over‑reliance on contested NPL figures can breach the methodology's balance principles. ADVERTISEMENT Not everyone supports APRM's framing. Analysts note that countries like Zambia officially halted repayments to Afreximbank in 2021, and South Sudan failed to honour its obligations, prompting legal recourse in London. Zambia's treasury has openly stated its debt will be restructured. Against this backdrop, Fitch's interpretation that certain sovereign debt has become non‑performing appears defensible under global standards. This dispute underscores a tension: Afreximbank's assertive growth strategy has boosted its developmental reach and institutional clout, yet it must reconcile that dynamism with risk and transparency expectations imposed by global credit agencies. With Oramah set to step down later this month, the new president will face a pivotal choice: maintain aggressive expansion as the bank charts an independent path, or recalibrate operations to conform more closely with multilateral development bank norms—a course change that could preserve borrowing benefits but limit growth prerogatives. Beyond institutional implications, the outcome has broader financial consequences. A downgrade to BBB‑ tightens Afreximbank's borrowing costs, heightens the risk premium for countries swayed by its lending, and complicates its mission to finance intra‑continental trade. That may squeeze African exporters and traders relying on the bank's funding. Policy stakeholders are paying attention. The APRM's call for dialogue and transparency signals a pushback against the perceived hold of Western agencies over African financial destiny. Meanwhile, the African Development Bank is developing a Continental Financial Stability Mechanism that may borrow under a regional rating—another step towards financial sovereignty.
Zawya
16-04-2025
- Business
- Zawya
African Leadership Magazine Unveils Top 25 African Finance Leaders 2025
African Leadership Magazine (ALM) ( is pleased to unveil its highly anticipated Top 25 African Finance Leaders 2025 list — a prestigious editorial recognition that honours excellence, innovation, and transformative leadership within Africa's financial services and economic governance landscape. This year's cohort comprises distinguished finance ministers, central bank governors, CEOs of leading financial institutions, and other influential figures who are shaping the continent's economic architecture through visionary policy direction and exemplary stewardship. The Top 25 list is a testament to the leaders who are championing fiscal responsibility, financial inclusion, and macroeconomic stability across the continent. These individuals have demonstrated a profound ability to navigate complex economic challenges, implement forward-thinking reforms, and inspire confidence in national and regional economies. Their collective leadership has contributed to enhanced investor confidence, accelerated digital finance adoption, and strengthened institutional frameworks that support inclusive and sustainable development. As Africa continues to assert itself as a dynamic player in the global economy, these leaders are setting the standard for excellence in financial governance, demonstrating the strategic foresight and resilience required to unlock the continent's vast economic potential. 'These finance leaders have not only surmounted formidable challenges but are actively shaping a new era of economic growth, transparency, and resilience,' said Dr. Ken Giami, Publisher&CEO of African Leadership Magazine. 'Their bold and visionary leadership is redefining Africa's financial narrative and positioning the continent as a rising global financial powerhouse.' The selection process follows a rigorous two-step procedure to ensure transparency and credibility. First, nominations are gathered from a global pool of experts in the finance and banking sectors, who identify individuals making significant contributions. Then, our editorial board conducts a thorough review, evaluating candidates based on their leadership, impact, and long-term influence on the African financial landscape. This comprehensive approach ensures that we honor only the most deserving leaders, whose work is truly transforming Africa's financial sector.' The formal recognition and celebration of these leaders will take place at the African Finance Leadership Forum, scheduled for 22 April 2025 at the United States Capitol Building, Washington D.C., USA, on the margins of the 2025 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF). The ALM Top 25 African Finance Leaders 2025: Dr. Benedict Okey Oramah – President/Chairman, African Export–Import Bank Mthuli Ncube – Minister of Finance, Economic Development&Investment Promotion, Zimbabwe Abdellatif Jouahri – Governor, Bank Al-Maghrib (Morocco) Jeremy Awori – Group CEO, Ecobank Transnational Inc. Situmbeko Musokotwane – Minister of Finance, Zambia Johnny Ohisa Damian – Governor, Bank of South Sudan Paul Russo – CEO, KCB Group PLC, Kenya Samaila Zubairu – President/CEO, Africa Finance Corporation Johnson Asiama – Governor, Bank of Ghana Olusegun Alebiosu – CEO, FirstBank Group, Nigeria Rindra Rabarinirinarison – Minister of Economy and Finance, Madagascar Mary Vilakazi – CEO, Firstrand Limited, South Africa Mamo E. Mihretu – Governor, National Bank of Ethiopia Kennedy Bungane – Group CEO, African Bank, South Africa Rama Krishna Sithanen – Governor, Bank of Mauritius Idrissa Nassa – CEO, Coris Bank Group, Burkina Faso Sheku Ahmed Fantamadi Bangura – Minister of Finance, Sierra Leone Carolina Abel – Governor, Central Bank of Seychelles Walton Ekundayo Gilpin – MD/CEO, Rokel Commercial Bank, Sierra Leone Ferdinand Ngon Kemoum – Group CEO, Oragroup SA, Cameroon Dr. Akinwumi A. Adesina, President, African Development Bank Group Sheikh Diba – Minister of Finance and Budget, Senegal Abdulmajid Mussa Nsekela – CEO, CRDB Bank Plc, Tanzania Khaled Al-Mabrouk Abdullah – Minister of Finance, Libya Hon. Henry F. Saamoi – Governor, Central Bank of Liberia Distributed by APO Group on behalf of African Leadership Magazine. For media inquiries, please contact: Ehis Ayere Group General Manager info@ +44 23 9265 8276 About African Leadership Magazine: The African Leadership Magazine, published by the African Leadership Organization (UK), focuses on presenting the best of Africa to a global audience, telling the African story from an African perspective while developing solutions to challenges facing the continent today. We have committed the last 16 years to promoting impactful leadership on the continent and promoting African opportunities globally through an ecosystem of quality Afro-positive content, Africa trade facilitation and market entry solutions, Afro-centric communities and business networking platforms, as well as through public sector training and consulting.
