AFC receive A+ rating from Africa CEOs

The Agricultural Finance Corporation was recently recognized as one of the best development finance institution in Africa. Photo: Courtesy

The Agricultural Finance Corporation was recently recognized as one of the best development finance institutions at the just concluded annual CEO Forum of the Association of African Development Finance Institutions held in Nigeria

This saw the funding agency awarded the A+ rating status, the highest approval status in terms of credit confidence and professional integrity

Speaking after receiving the award, AFC Managing Director, Lucas Meso said that the award is as a result the firm’s continued efforts to reform and sustain its governance, financial and operational standards

The concerted efforts to enhance the Corporation’s efficiency and strengthen its creditworthiness have had a significant impact on its operations. These efforts have seen the Corporation move from a D rating in 2011 to A+ in 2017,” said Meso

He added that the ongoing reforms are designed to give AFC’s customers world class service in an increasingly competitive environment

The Agricultural Finance Corporation was assessed with the AADFI prudential standards, guidelines and rating system (PSGRS) during 2016 peer review exercise.

The A+ rating was based on certified results of the assessments in the areas of governance, financial and operational standards, in which the Corporation scored a total of 88 per cet.

Meso further said that the improved rating would position the Corporation favorably as it went out to mobilize resources to finance agricultural development within the country.

The Peer Review is designed to improve the effectiveness of development banks in service delivery and benchmarking their standards with similar institutions outside Africa.

The review focuses on governance and management, financial, prudential and operational standards. Specific parameters include management independence, commercial principles, accounting and auditing and management information systems and procedures.

Others are corporate citizen governance standards, capital adequacy, profitability, asset quality, risk management and lending policies.

The Agricultural Finance Corporation has been a member institution of AADFI for 10 years, and was one of the institutions involved in developing the standards.