The African Export-Import Bank (Afreximbank) is undergoing a critical transition, both in leadership and market confidence, as President and Chairman of the Board, Professor Benedict Oramah, formally exits the institution amid a fresh credit rating downgrade by Moody’s Investors Service.
In a move seen as a significant blow to the bank’s financial standing, Moody’s downgraded Afreximbank’s issuer rating from Baa1 to Baa2, altering the outlook from “negative” to “stable.” The two-notch downgrade, placing the bank just above “junk” status, follows a similar action by Fitch Ratings, which previously cited high exposure to sovereign risk and flagged governance challenges in loan classification and risk management.
Moody’s assessment, released earlier this week, raised red flags over the bank’s increasing exposure to distressed sovereign borrowers like Ghana and Zambia, stating, “The bank’s recent shift to unsecured lending to sovereigns under stress has introduced significant risks… and heightened its sensitivity to its difficult operating environment.” These lending activities, it warned, expose Afreximbank to capital vulnerabilities, especially under restructuring mandates like the G20 Common Framework, which could require debt write-downs.
Despite the ratings headwinds, Afreximbank has defended its operational strategy. In a statement issued Thursday, the bank paid tribute to Oramah’s 10-year tenure, describing it as a “transformational decade” that reshaped Afreximbank into a continental powerhouse. The bank credited Oramah with leading an aggressive expansion drive and increasing shareholder value.
Speaking at the 2025 Afreximbank Annual Meetings, Oramah reflected on his stewardship since assuming office in June 2015. “In my acceptance speech, I promised to deliver a solid bank that would lead its peers in all financial performance metrics. I believe we’ve kept that promise,” he said.
Under Oramah’s leadership, Afreximbank’s total assets and guarantees ballooned from $5bn to over $43.5bn by April 2025—an eightfold increase. Revenues surged from $408m to $3.24bn, while net profit grew by nearly 700% to approximately $1bn. Shareholder equity, bolstered by reinvested earnings and capital injections, soared to $7.5bn from $1bn in 2015. Liquidity sources became more diversified, with the share of African funding rising from 11.7% in 2015 to 36.6% in 2025.
Still, rating agencies remain unconvinced. Fitch recently estimated the bank’s non-performing loan ratio at 7.1%, above its 6% high-risk threshold. Although Afreximbank and regional partners like the African Peer Review Mechanism criticized the ratings as lacking context, the cumulative downgrades could curtail the bank’s access to low-cost international capital and limit institutional investor participation.
Analysts believe the exit of Oramah, coupled with investor scrutiny, will shape the institution’s trajectory in the coming months. Afreximbank has announced George Elombi, a Cameroonian legal expert who joined the bank in 1996, as Oramah’s successor. Elombi’s elevation is seen as a move to ensure continuity and leverage institutional knowledge amid external pressure.
Commenting on the future, Oramah expressed optimism, saying, “The next phase must focus on financing high-value exports, which are essential for job creation and economic diversification across Africa.”
Experts argue that Afreximbank’s current challenge is balancing its role in developmental lending with maintaining investor confidence. While its strategic support to sovereigns during economic stress has earned praise in policy circles, it has also strained traditional banking risk parameters.
As Elombi prepares to assume office, the new leadership will be under pressure to strengthen internal governance, manage loan exposure, and rebuild investor sentiment. Analysts also expect increased regulatory oversight and demands for enhanced disclosure and risk profiling in light of the recent downgrades.
With Africa’s economic outlook tied closely to development finance institutions like Afreximbank, stakeholders will be watching closely as the bank navigates a pivotal leadership transition and a more cautious credit market.