S&P Upgrades AFC to ‘A’, Boosting Infrastructure Funding Prospects

Africa Finance Corporation has said its newly obtained ‘A’ long-term credit rating from S&P Global is expected to reduce its funding costs and enhance its capacity to finance infrastructure projects across Africa.

The disclosure was made by AFC’s President and Chief Executive Officer, Samaila Zubairu, following S&P’s first-ever rating of the multilateral development finance institution. The rating places the Nigeria-backed lender firmly within the global investment-grade category.

Zubairu said the assessment validates AFC’s financial strength and operating model, adding that improved market access would ultimately translate into lower funding costs for both the institution and its clients on the continent.

S&P Global cited strong asset quality and robust liquidity coverage as key factors supporting the rating, while assigning the lender a positive outlook that signals the possibility of future upgrades. The agency also issued an A-1 short-term credit rating.

The development comes as African development finance institutions increasingly turn to market-based funding amid declining concessional financing and reduced aid flows. AFC already holds ratings from other international agencies and remains majority owned by Nigerian institutions, including the Central Bank of Nigeria.