..Launches African Research, Innovation Hub to advance  Intra-African trade

China Chengxin International Credit Rating Co., Ltd (CCXI) has assigned an ‘AAA/Stable’ rating to African Export-Import Bank (Afreximbank), recognising the Bank as a leading Multilateral Financial Institution (MFI) on the continent.  Afreximbank is the first African Multilateral Financial Institution to receive AAA rating from CCXI.

In its 2024 Credit Rating Report for African Export-Import Bank, released in Beijing on 15 January, CCXI noted that the rating considered, as key rating strengths, Afreximbank’s “very high strategic positioning; sound risk management system; agility and adaptability in business generation, very strong profitability and prudent liquidity management underpinned by a very high coverage ratio of current assets over short-term debts.

“CCXI recognises Afreximbank’s strategic relevance to the (African) continent and its ability to execute on its strategic goals and mandate and to meet the needs of member states at different stages of development, even during the most challenging times,” it added,   It is believed that Afreximbank’s ratings would remain stable over the next 12 to 18 months.

Reacting to the rating announcement, Afreximbank’s Senior Executive Vice President, Denys Denya noted that the rating represented the strongest endorsement the Bank had received from any credit rating agency and that the Bank had become one of the first African multilateral financial institutions to achieve a top credit rating grade in the Chinese market, especially on the strength of its stand-alone credit profile.

“This is, again, a testament to the Bank’s systemic relevance to the African continent; its strong delivery of its developmental mandate; its prudent risk management practices and its relentless focus on capital and liquidity over the years which have culminated in a formidable rating that provides us with new opportunities to raise competitively priced capital in China and to diversify our funding partnerships,”  he said.

Confirming that the bank would continue to play a pivotal role in facilitating China-Africa trade and investment across its member states, he highlighted the robust relationships it enjoys which illustrates how integral it has become to the achievement of the African Union’s key strategic economic programmes and initiatives, covering the continent and the diaspora, thereby integrating Global Africa.

According to  Denya, the rating puts Afreximbank on a stronger footing as it embarks on fundraising activities in a relatively new capital market as we continue to leverage optimal financial resources into Africa.

He pointed out that the ‘AAA’ credit rating would give utmost assurance to the Bank’s new and existing funding partners in China to support the Bank’s fundraising activities on competitive terms and would position the Bank to pursue its developmental mandate and objectives.

Since 2019, Afreximbank has grown its assets by 28 per cent (5-year CAGR), achieving a return on average equity of 11 per cent and sustaining its capital adequacy at 25.5 per cent, on average, with the growth strongly supported by shareholders.

It launched its largest general capital increase in 2021, targeting to raise US$2.6 billion by 2026, but achieved nearly 90 per cent of that target in three years in a remarkable demonstration of support from shareholders, despite volatile macroeconomic circumstances.

Afreximbank continues to enjoy strong market access and aims to diversify its funding base into new debt capital markets, on the back of its highly successful inaugural Samurai bond issuance in 2024.

It will be exploring opportunities to tap into the Chinese Panda bond market in 2025 to support and facilitate accelerated trade and investment between China and Africa and to expand its existing funding partnerships.

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.

For 30 years, the bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.

A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA.

Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA.

At the end of December 2023, Afreximbank’s total assets and contingencies stood at over US$37.3 billion, and its shareholder funds amounted to $6.1 billion.

Meanwhile, Afreximbank, in collaboration with African Union Commission and AfCFTA Secretariat has launch its new initiative the “African Research and Innovation Hub @IATF”, during the 4th Intra-African Trade Fair (IATF2025).

The key objective is to boost academic research output and increase collaboration between academia, industry, and policy makers across Africa in the bid to drive forward intra-African trade and industrialisation.

The platform aimed to provide an opportunity for African, Caribbean and Diaspora lecturers, students, and researchers to showcase innovative research and prototypes that contribute towards intra-African trade and industrialisation.

It also seeks to develop industry collaborations and exchange knowledge with leading professionals in the field during IATF2025 in Algiers, Algeria from September 4-10, 2025.

In addition, the African Research and Innovation Hub @IATF would  promote and commercialise African research and innovation.

It also acknowledges that there are many talented and creative Africans across Africa, the Caribbean and the Diaspora, who have brilliant ideas, concepts, publications and prototypes but lack the relevant support required to help them nurture their ideas and commercialise them.

The platform provides access to more comprehensive information, relevant data, and literature whilst exposing national researchers to potential investors or venture capitalists who could assist with commercialising their research output and prototypes.

Another key objective of the Hub is to encourage innovation and entrepreneurship among lecturers and students by connecting them to trade exhibitions, start-up pitches, and networking opportunities with business leaders, potentially leading to new start-ups and increased academic-industry collaborations.

It also provides opportunities for networking and potential collaboration with others in academia and practitioners across the continent, research institutions, industry, and policymakers.

Researchers, academics and university students are provided with access to information on emerging issues in the field of intra-African trade and can incorporate these into their research programs and academic curricula.

Lastly, it enhances the capacity of lecturers and students in understanding and teaching the complexities of trade policies, trade standards, regional economic communities, the African Continental Free Trade Area (AfCFTA) and industrialisation.

“The hub aims to support the broader objectives of enhancing intra-African trade, fostering economic development, and building a connected, informed, and empowered next generation of African trade and investment leaders across all fields.

“This hub will allow students to exhibit their prototype inventions and published research papers on select topics, which are expected to adhere to world-class standards.

Executive Vice President Intra-African Trade and Export Development at Afreximbank, Mrs. Kanayo Awani,  said: “IATF2025 is an important moment for African research and innovation, bringing together the brightest minds from universities and research institutions to contribute towards promoting intra-African trade and industrialisation.

According to her, the African Research and Innovation Hub @IATF will serve as a groundbreaking platform for African, Caribbean and Diaspora lecturers, students, and researchers to demonstrate their capabilities, and connect with industry leaders, investors, and policymakers.

She pointed out that this is more than an opportunity to display research; it’s a unique moment to shape the future of intra-African trade and industrialisation to drive economic growth across the continent.

Entries will be judged by a panel consisting of distinguished trade experts, scholars, and industry leaders from across Africa. The panel will evaluate submissions based on innovation, relevance to African trade and industrialisation, and the potential for practical application.

Candidates should demonstrate a number of key criteria – including academic excellence and a passion for advancing research on intra-African trade, industrialisation, leadership and initiative in projects related to trade, industrialisation and innovation, and regional economic integration; high-quality research outputs or innovative prototypes aligned with IATF’s themes and a commitment to furthering knowledge and collaboration by sharing insights from the event with their academic institutions.

University Lecturers, University Students, and Researchers Affiliated with National Research Institutions from Africa, the Diaspora including the Caribbean are invited to submit their applications.