Bloomfield Investment Corporation has assigned the African Fund for Guarantee and Economic Cooperation (FAGACE) a long-term rating of A+ and a short-term rating of A1, in local currency, both with a stable outlook. The rating, valid from July 2026 to June 2027, highlights the improvement in governance framework, the progress of commitments, and the strengthening of risk management mechanisms. FAGACE Rating Sheet 2026
FAGACE benefits from a high credit quality as judged by Bloomfield Investment Corporation. In the long term, the agency considers the protective factors to be “good”, even though risks may increase during periods of economic pressure. In the short term, it believes that the ability to repay in a timely manner is very high, supported by strong liquidity factors. FAGACE Rating Sheet 2026
This assessment comes in the context of the Fund’s increasing activities, particularly since the implementation of its 2021-2025 strategic plan. Bloomfield notes a progressive consolidation of governance, dynamic expansion of commitments, improvement in financial indicators, as well as strengthening of internal control and risk management mechanisms. Liquidity indicators are also described as comfortable and well above safety thresholds. FAGACE Rating Sheet 2026
Financial data reflects this acceleration. FAGACE’s guarantee commitments increased from 64.865 billion CFA francs in 2021 to 725.369 billion CFA francs in 2025, after peaking at 899.993 billion CFA francs in 2024. At the same time, net banking income rose from 2.444 billion CFA francs to 5.925 billion CFA francs over the period. The balance sheet total stood at 65.183 billion CFA francs at the end of 2025, with 58.756 billion CFA francs in equity. FAGACE Rating Sheet 2026
However, this rapid growth reveals some tensions. Bloomfield identifies a potential deficit in aval compared to the level of equity, as well as a significant increase in the cost of risk. The agency also highlights the persistence of geopolitical and security risks in some countries where the Fund operates. FAGACE Rating Sheet 2026
In this context, FAGACE’s ability to strengthen its equity capital appears as one of the main challenges in the coming years. Nevertheless, the Fund has room for maneuver through its financial flexibility and the use of reguarantee and insurance mechanisms, which can support its continued development.
Established in 1977, FAGACE is an international financial institution specializing in providing guarantees to support public and private investments in its member states. Its shareholders include 19 states, as well as the Central Bank of Madagascar and two institutional investors. By the end of 2025, its social capital was set at 500 billion CFA francs. The Fund, headquartered in Cotonou, also has representations in Cameroon, Rwanda, and Senegal. FAGACE Rating Sheet 2026
The A+ and A1 rating, with a stable outlook, reflects FAGACE’s ability to continue its expansion, subject to a progressive consolidation of its equity base and the management of risks related to the acceleration of its commitments.
