Africa Finance in Brief: Afreximbank boost, shrinking aid, uneven growth redraw Africa’s finance landscape

South Africa’s accession to Afreximbank signals a deeper push toward intra-African financing at a time when external support is waning. Ratings agencies see relative stability in key banking systems despite slow growth, while weakening business activity in Ghana highlights uneven economic momentum. Meanwhile, African insurers are accelerating sustainability commitments, channeling billions into climate-linked assets as the continent reshapes its financial architecture.

South Africa joins Afreximbank after Fitch withdrawal

South Africa has formally acceded to the African Export-Import Bank’s establishment agreement, becoming the institution’s 54th member and expanding the lender’s continental reach. The move comes shortly after Fitch withdrew its ratings on Afreximbank following a commercial dispute, ending analytical coverage of the Cairo-based multilateral lender.

Why it matters: Pretoria’s entry strengthens Afreximbank’s credibility and capital base at a critical moment when African countries are seeking alternative financing channels beyond traditional Western institutions. It also underscores a broader shift toward regional financial self-reliance.

Moody’s affirms stability in South African, Nigerian banking systems

Moody’s has maintained a stable outlook on South Africa’s Ba2-rated banking system, citing gradually improving operating conditions despite persistent structural inefficiencies and weak economic growth. The agency also kept a positive outlook on Nigeria’s banking sector, positioning both as anchors of regional financial stability.

Why it matters: Stable banking outlooks in Africa’s biggest economies help sustain investor confidence and capital flows, even as macroeconomic growth remains subdued. This resilience is crucial for credit expansion, financial intermediation, and broader economic recovery.

African countries turn inward as US aid falls to decade low

US foreign assistance to Africa dropped in 2025 to its lowest level in at least ten years, extending a decline that began in 2022 and accelerated after Washington’s aid freeze. Funding cuts affected nearly all 52 countries reviewed, forcing governments to reassess reliance on external support.

Why it matters: Shrinking aid flows are accelerating a structural pivot toward domestic revenue mobilisation, regional trade, and alternative financing sources. The shift could redefine Africa’s development model but may also strain vulnerable economies in the near term.

Ghana records weakest business activity despite record low inflation

Ghana posted the softest private-sector performance among eight major African economies at the start of 2026, with its Purchasing Managers’ Index falling to 48.5 in January from 51.1 in December—signalling contraction after four months of expansion, even as inflation dropped to multi-decade lows.

Why it matters: The divergence between easing inflation and weakening business activity highlights fragile recovery dynamics. Policymakers may face pressure to balance monetary easing with growth-support measures to prevent a broader slowdown.

African insurers’ climate-linked assets reach $52bn

African insurers now hold $52 billion in assets tied to climate action and social inclusion, according to the 2025 Nairobi Declaration on Sustainable Insurance report. The study provides the first continent-wide baseline of how ESG principles are being embedded across underwriting, investment, and governance.

Why it matters: Rising ESG-linked assets position insurers as key financiers of Africa’s energy transition and climate resilience. This trend could unlock long-term capital for infrastructure while reshaping risk pricing and regulatory expectations across the sector.

Chart of the Week