Abuja: Dr George Elombi, the incoming President of the African Export-Import Bank (Afreximbank), has downplayed concerns over Fitch Ratings' recent downgrade of the institution, attributing the negative outlook to differences in loan classification methodologies rather than fundamental weaknesses.
According to Ghana News Agency, Dr Elombi, in his first major interview after securing near-unanimous shareholder approval, indicated that Fitch's assessment was based on 'old methodology' not aligned with current international banking standards. This statement comes ahead of his media engagement to close the 32nd Annual Meetings of the Afreximbank, held in Abuja, Nigeria.
Earlier in June, Fitch downgraded Afreximbank to BBB- from BBB, largely due to non-performing loans (NPLs), raising concerns about the Cairo-based bank's loans to Zambia and Ghana, which may suffer losses in ongoing debt restructuring exercises. However, Dr Elombi described the downgrade as 'largely just a discipline' that fluctuates over time, insisting that the rating action was not a reflection of any fundamental issues with the bank's operations.
Dr Elombi highlighted that the bank operates under the International Financial Standards Rule Nine, a methodology adopted globally by banks, underscoring the robustness of Afreximbank's financial metrics, such as liquidity position, internal capital generation, and shareholder capital support. He also pointed out that Fitch's report acknowledged that the problematic loans would likely be resolved within 18 to 24 months, indicating that the assets were not permanently impaired.
Fitch calculated Afreximbank's NPLs exceeded the six per cent 'high' risk threshold, but Dr Elombi argued that this calculation did not accurately reflect the bank's risk profile when assessed under current international standards.
Dr Elombi, a Cameroonian national, will succeed Professor Benedict Oramah as President of Afreximbank in September 2025. The seasoned executive, with the bank since 1996, has risen through the ranks to become Executive Vice President, Governance, Legal and Corporate Services. The bank emphasized Dr Elombi's deep understanding of its mission and structure, having significantly contributed to shaping its structure, expanding its capital base, and leading crisis response efforts across Africa and the Caribbean.
'I see Afreximbank as a force for industrialising Africa and for regaining the dignity of Africans wherever they are,' Dr Elombi stated during his acceptance remarks.