Story By: Akua Oteng Amponsah
The African Peer Review Mechanism (APRM) has criticized Fitch Ratings for downgrading the African Export-Import Bank (Afreximbank) over its exposure to Ghana and other countries.
“The assumption that Ghana, South Sudan and Zambia would default on their loans to Afreximbank is inconsistent with the 1993 Treaty establishing the Bank,” the APRM stated.
According to APRM, Fitch’s assessment is “legally incongruent and analytically flawed” because it disregards the unique legal framework governing Afreximbank’s sovereign lending operations.
“It is legally incongruent to classify a loan to member countries as non-performing, especially when the borrower states are shareholders in the lender institution, no formal default has occurred and none of the sovereigns have repudiated the obligation,” the APRM emphasized.
The APRM warned that mislabeling intergovernmental loan discussions as signs of credit distress could erode trust in African-led financial institutions and distort investor perceptions.
“Fitch has misinterpreted the invitation extended by Ghana, South Sudan and Zambia to Afreximbank to discuss the loan repayments as signalling an intention to default and/or to lift the Preferred Creditor Status,” the APRM noted.
The APRM has called on Fitch Ratings to revise its assessment approach and engage directly with African institutions to ensure credit evaluations reflect legal realities and regional contexts.
“Transparent and context-intelligent credit assessments are vital for fair treatment of Africa in global finance,” APRM concluded.
