Fitch Ratings on the grill...again!

Fitch Ratings slapped Afreximbank with a ‘negative outlook’ and the Bank is on the defensive; armed with airtight treaties, forward-looking accounting, and no signs of default, prompting debate on an indigenous agency that ‘will serve the continent better and fairly’.

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⚖️ Fitch Ratings On The Grill…Again! 

In a sharply worded rebuttal, the African Peer Review Mechanism (APRM) has challenged Fitch Ratings’ recent downgrade of Afreximbank, calling it a misinformed decision rooted in flawed assumptions about sovereign loan classifications. At the center of the dispute is Fitch’s treatment of exposures to countries like Ghana and South Sudan as non-performing loans (NPLs), despite treaty-backed commitments and zero defaults.

Afreximbank, operating under IFRS 9 standards and fortified by robust collateral and risk provisions, reported an NPL ratio of 2.44%, far below Fitch’s 7.1% estimate based on what the Bank deems a misclassification. The APRM emphasized that loans extended under the Bank’s multilateral treaty — signed by 53 African states — are governed by a legal framework of intergovernmental cooperation, not market-style credit risk metrics.

Fitch itself acknowledged the Bank’s strong capitalization, liquidity, and internal capital generation, yet issued a ‘negative outlook’ based on speculative restructuring risks that contradict Afreximbank’s own treaty obligations and policy stance. In essence, the critics argue that the downgrade reflects a deeper misunderstanding of Africa’s institutional architecture and the unique role Afreximbank plays in safeguarding the continent’s financial sovereignty.

Meanwhile, in a bold bid to reshape Africa’s financial narrative, the African Credit Rating Agency (AfCRA) is set to launch by September 2025, offering independent assessments rooted in regional realities. Privately owned and free from state control, AfCRA aims to challenge the dominance and perceived biases of global credit rating giants.

How this will play out is an issue that remains to be seen…

Your Opinion 

🏦 Back to Single-Digit CBK Interest Rate

The Central Bank of Kenya has trimmed its benchmark rate by 25 basis points, bringing it to 9.75% — a symbolic return to single digits for the first time since May 2023. Inflation has cooled to 3.8%, aided by falling food and energy prices, and the credit market is beginning to thaw. The Monetary Policy Committee framed the move as both precaution and promise. It’s a nudge meant to encourage lending without rattling the shilling. In an economy balancing recovery with restraint, the signal is clear: Kenya could be loosening its grip. More updates to come…

Here is yesterday's Poll Result :

Question: The Central Bank Rate (CBR) is currently at 10.00%, after a 75bps cut on April. What’s your prediction for tomorrow?

⚡ Finance Bill 2025 Threatens Kenya’s Solar Momentum

The Kenyan government’s proposed 2025 Finance Bill may dim the country’s solar ambitions by reintroducing a 16% VAT on solar equipment, a move industry groups warn could increase household system prices by over Ksh 2,000. The Kenya Renewable Energy Association and GOGLA are sounding the alarm, pointing to a historical 20% market contraction during previous tax hikes. In a country where some counties still register electrification rates below 15%, energy from the sun is a lifeline. Read here >>>>>

🔌 Ethiopia’s EV Revolution Gains Speed…But the Road Remains Bumpy

In just two years, Ethiopia has tripled its electric vehicle fleet. With fuel car imports effectively frozen by foreign exchange rationing, EVs now account for over 60% of new registrations. Yet, for all its electrified ambition, the country’s charging infrastructure remains perilously thin, and affordability eludes many. The government’s plan is grand, but for now, EV owners may still need divine patience or very long extension cords. Read here >>>>>

🛒 Private Equity: Betting On Africa's Retail Revolution

In a bold play reflecting Africa's evolving investment landscape, Mauritius-based Silverbacks Holdings has partially exited Nigerian retail-tech startup Omniretail with a fivefold return—just weeks after cashing out of fintech Lemfi at a staggering 29x. Omniretail, which streamlines West Africa's informal retail supply chains, saw its revenue skyrocket over 71,000% to $120 million in just three years. Read here »»»»»

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