About 80 per cent of the African Export-Import Bank (Afreximbank)‘s balance sheet is invested in loans and development projects across Africa, underscoring the bank’s commitment to financing the continent’s industrialisation and economic growth.

At the Afreximbank Mid-Year media roundtable held in Abuja yesterday, President and Chairman of the Board of Directors of Afreximbank, Dr George Elombi, said the bank has deliberately channelled most of its resources into productive investments across Africa because that is the purpose for which it was established.

Elombi said rather than keeping its resources in foreign financial markets, the bank has deliberately invested them in development projects across Africa to support infrastructure, industrialisation, manufacturing, trade and other productive sectors that will drive the continent’s economic growth.

He added that the bank remains committed to financing infrastructure, manufacturing, trade and industrial projects that will accelerate economic transformation across the continent.

On the bank’s credit rating, Elombi said Afreximbank’s strong financial position justifies a higher rating, maintaining that the current assessment is largely influenced by the perception that African institutions operate in a high-risk environment rather than by the bank’s actual financial performance.

He said the bank’s shareholders remained confident despite the recent rating action and continued to support the institution because they understood the strength of its operations.

According to him, Afreximbank continued to approve major financing for governments, central banks and private sector projects throughout the review period, demonstrating that its lending capacity was never affected.

Elombi added that member states also honoured their capital commitments and increased their deposits under the bank’s deposit programme, strengthening liquidity and eliminating the need for the bank to seek additional funding from external sources.

He argued that even the rating agency’s own assessment of Afreximbank’s financial profile supports an investment-grade rating within the BBB to A category, but said the final rating was lowered because of assumptions about the risks associated with operating in Africa.

He maintained that the adjustment reflected perception rather than the bank’s actual credit quality and stressed that shareholders fully understand this distinction.

The Afreximbank president also renewed the call for the establishment of an African credit rating agency, saying African institutions should be assessed based on the continent’s economic realities rather than broad assumptions about risk. He said Africa has experienced banking, finance and accounting professionals capable of developing credible rating methodologies that fairly assess African companies and financial institutions.

On the Pan-African Payment and Settlement System (PAPSS), Elombi described the platform as a major success and a critical pillar for expanding intra-African trade, although he acknowledged that its rollout was slower than initially expected.

He explained that many African central banks initially misunderstood PAPSS and feared it would interfere with their regulatory responsibilities, making it necessary to engage regulators and clarify that the platform was created to facilitate cross-border payments rather than replace central banks.

According to him, PAPSS is now fully operational and has become an essential part of Africa’s trade infrastructure. He said just as trade depends on ports, railways, roads and pipelines, it also requires an efficient payment system to enable businesses to settle transactions across borders.

Elombi said one of the platform’s major innovations is the African Currency Marketplace, which allows businesses and financial institutions to exchange African currencies directly without first converting them into the United States dollar or other foreign currencies.

He explained that the marketplace enables companies holding excess local currencies in one African country to exchange them with businesses that require those currencies elsewhere.

He added that the marketplace has also enabled the Dangote Group to exchange its Ethiopian birr holdings with the naira holdings of Ethiopian Airlines in Nigeria, reducing pressure on Nigeria’s foreign exchange market by limiting demand for the U.S. dollar.

Elombi disclosed that Afreximbank is preparing to launch the PAPSS Card, which will enable Africans travelling across the continent to make payments in their local currencies while the platform handles settlement in the background.

He clarified that the card has not yet been issued because the company responsible for its rollout has only recently been established and its management team has just been appointed.

He said PAPSS is already processing regular payment transactions across 28 African countries and currently connects more than 190 commercial banks, fintech companies and payment switches.