Fitch Cuts Afreximbank Rating as Oramah Exits
Fitch Ratings has downgraded the African Export-Import Bank (Afreximbank) to just one notch above junk status, casting a shadow over the legacy of outgoing President Prof. Benedict Oramah. The downgrade reflects mounting concerns over the bank’s risk profile, governance practices, and rising exposure to politically volatile markets.
Once celebrated for its strong creditworthiness and strategic relevance in Africa’s trade ecosystem, Afreximbank is now facing critical scrutiny. Under Prof. Oramah’s leadership, the bank aggressively expanded its lending portfolio, often into high-risk territories with weak repayment capacities. Analysts say this strategy, while ambitious, has strained the institution’s balance sheet and eroded investor confidence.
“The bank’s weakening capital buffers and rising non-performing loans reflect a departure from the prudent standards that once underpinned its high ratings,” Fitch noted in its report. “The growing politicization of its loan book and declining transparency are serious red flags.”
Prof. Oramah, who took the reins in 2015, inherited a bank with robust ratings and strong international goodwill. Over time, however, critics argue he traded long-term stability for short-term influence, aligning the bank too closely with government agendas and mega-projects of questionable viability.
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With his tenure ending, stakeholders are now left to reckon with a diminished reputation and a fragile credit standing. The downgrade serves as a sobering reminder that prestige can be quickly lost when institutional discipline gives way to unchecked expansionism.
As the search for a new leader begins, investors and development partners are calling for a reset—urging the next administration to restore confidence, tighten oversight, and return Afreximbank to a more sustainable path.
