My friend explained it. Friction is actually acting on the rope, at point C, rather than at A. At A there is no friction since the rod is "attached" at point A, so like a nail in the wall (which of course wont have friction). Obviously, we're not considering forces acting on the rope, thats why friction is ignored.
V and H are NOT frictional forces, they are the horizontal and vertical components of the reaction force at A.