THE African Export-Import Bank (Afreximbank) has delivered a stellar financial performance for 2024, reporting a 29% surge in net income to US$973,5 million despite operating in a challenging global environment marked by geopolitical tensions, inflationary pressures and high interest rates.
Zimbabwe is one of the 54 African member states participating in Afreximbank.
The pan-African multilateral financial institution's robust results underscore its growing resilience and strategic importance in facilitating African trade.
Afreximbank's total income grew by 23% to reach US$3,3 billion, driven primarily by increased business volumes and favorable interest rate conditions.
The bank's net interest income, a key measure of lending profitability, rose 25% to US$1,8 billion, reflecting effective management of borrowing costs.
While operating expenses increased 21% to US$367,7 million due to inflationary pressures and strategic workforce expansion, the bank improved its cost-to-income ratio to 18%, demonstrating enhanced operational efficiency.
The financial institution's balance sheet expanded significantly, with total assets growing 7,55% to US$40,1 billion.
This growth was supported by increases in net loans, guarantees, letters of credit and investments.
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Notably, the carrying value of property and equipment jumped 33% to US$436,4 million, fueled by ongoing construction of the Afreximbank African Trade Centre facilities in Zimbabwe and other countries.
Shareholders' funds grew by 17% to US$7,2 billion, boosted by retained earnings and a successful US$412,8 million capital raise under its second general capital increase programme.
In a statement Monday, Denys Denya, Afreximbank's senior executive vice president, emphasised the bank's strong position: "In a challenging and rapidly evolving global geopolitical and economic environment, the group delivered robust financial performance, exceeding expectations and outperforming prior years."
He highlighted the institution's solid liquidity position, well-capitalised balance sheet and high-quality asset portfolio as key factors enabling it to navigate economic volatility while sustaining growth.
Looking ahead, Afreximbank remains focused on expanding intra-African trade financing, strengthening risk management frameworks, leveraging its AAA credit rating from China Chengxin International to diversify funding sources, and advancing strategic infrastructure projects across the continent.
The bank's 2024 performance not only demonstrates its financial strength but also reinforces its critical role in supporting Africa's economic integration and development ambitions amid persistent global uncertainties.
As Africa continues to navigate complex economic challenges, Afreximbank's results position it as a stable and growing force in continental trade finance and development.
With its strong financial foundation and strategic initiatives, Afreximbank is well-placed to continue driving African trade and economic growth while maintaining resilience against external shocks.
The bank's ability to deliver record profits in difficult conditions underscores its importance as a key institution supporting Africa's economic transformation.
