Africa Finance Corporation (AFC), a leading African infrastructure investment company, has had its A3 long-term credit rating reaffirmed by Moody’s, maintaining this rating for over a decade. Moody’s also confirmed AFC’s P-2 short-term rating and gave it a stable outlook, signaling the corporation’s strong and reliable financial position.
“Despite higher risks in some of AFC’s countries and a low average rating of its shareholders, the company’s strong cash reserves and careful management of assets protect it from financial problems,” Moody’s said.
AFC reported its best results in fiscal 2024, with total revenue over US$1 billion and total assets rising 16.7% to US$14.41 billion. It also held a Capital Adequacy Ratio of 33.6% (showing strong financial stability) and Liquidity Coverage Ratios of 194% and 191%, meaning it has more than enough cash to cover short-term needs, even under stress.
The strong rating helps AFC borrow at low costs, enabling major projects like the Lobito Corridor railway linking Angola, the Democratic Republic of Congo, and Zambia, and a US$150 million investment in Africa’s largest copper producer, Kamoa-Kakula.
“Being rated A3/P-2 for the eleventh consecutive year shows AFC’s strength and allows us to fund major projects that connect Africa and support industrial growth,” said Samaila Zubairu, AFC President & CEO.
Recent funding successes include a US$500 million perpetual hybrid bond, a US$400 million Shariah-compliant loan, and a US$1.5 billion three-year syndicated loan, attracting lenders from Africa, Asia, Europe, and the Middle East.
Since its founding in 2007, AFC has invested over US$15 billion across 36 African countries and now has 46 member states, focusing on power, natural resources, transport, heavy industry, and telecommunications projects.
Source: Africa Finance Corporation (AFC)
