Fidelity bank card banner Camano banner
Afreximbank set to address access to finance for SMEs

By Lucy Ogalue on 19/03/2019

Views: 301


The African Export-Import Bank (Afreximbank) says ‘factoring’, a form of financial transaction, is a viable and sustainable solution that will address access to finance for Africa’s  Small and Medium Enterprises (SMEs).

Ms Kanayo Awani, Managing Director of the Intra-African Trade Initiative at Afreximbank, said this in a statement by Afreximbank’s Head of Media,  Mr Obi Emekekwue, on Monday in Abuja. 

Factoring is also a type of debtor finance in which a business sells its accounts receivable to a third party called a factor at a discount.

Emekekwue said the bank’s managing director spoke at a factoring promotion conference in Gaborone. 

According to Awani, access to affordable  finance hinders the growth of Africa’s SMEs and Factoring, a form of trade finance will  provide a solution to address the SMEs financing gap.

She said that it would help innovative SMEs to grow and also support Africa’s structural transformation and trade development.

Awani further explained that factoring was an important alternative to other trade financing sources such as bank loans.

“In spite of its huge opportunities, however, factoring has not yet taken off fully in Africa, with the region accounting for less than one per cent of global factoring volumes in 2017.

“Notwithstanding, the region has demonstrated strong growth in recent years, with factoring volumes growing from 14.9 billion Euro in 2009 to approximately 22.3 billion Euro in 2017.

“Most of these volumes are concentrated in South Africa, Tunisia, Morocco, Egypt, Mauritius and Kenya,” Awani said.

She said that Africa’s factoring volumes were projected to reach about 200 billion Euro by 2021, resulting mostly from new market entrants supported by the sustained economic growth.

She said the projected volume was expected to result from rapid rise of Africa’s middle class and the emergence of innovative industries supported by technological advancements.

She said others include the rapidly expanding trade and economic relations between Africa and major economies in the South and increasing focus on regional integration and intra-regional trade under the African Continental Free Trade Agreement.

Afreximbank had been playing  leading role in facilitating the growth of factoring in Africa through various interventions.

Some of the interventions include supporting the creation of a facilitative legal and regulatory environment for factoring and provision of finance and guarantees to factoring companies among others.

The two-day Factoring Promotion Conference had as its theme “Domestic and International Factoring: Alternative tools for SME financing in Africa.”

It had over 180 attendees whom it provided practical information on factoring activities and the importance of factoring in the development and promotion of SME financing. 

It also provided networking opportunities for African factors, bankers, lawyers and others. (NAN)

Source News Express

Posted 19/03/2019 12:28:35 PM





You may also like...
Wiko affirms NCC and International Certification for phone...

FG vows to tackle violent extremism

Police beef up security after Ondo bank robbery...

Day Jime wowed NEPZA staff in Kano

5 Nigerians hospitalised after attack by South African...

Niger Delta an occupied territory, says foremost environmentalist...

After 20 years in Senate, Mark embarks on...

Stop your uncharitable attacks on INEC, Yoruba group...

Nigerian Army defies court order awarding junior officer...

Plane conveying Super Falcons officials develops electrical problem...


Saraki’s CoS dumps APC, says party shouldn’t be...


Latest News Presidential Election Tribunal turns down PDP’s request for more time to close case UNVEILED: Persecuted Nigerian Christian hosted in White House by US President Trump (PLUS PHOTO) Why most state governors have not formed cabinets — Intersociety *Hits Speaker Gbajabiamila for appointing 33 aides Funke Olakunrin: We can no longer allow our people to be killed like chickens — Gani Adams Kidnapped 5-year-old Bayelsa girl still held in captivity after payment of N1m ransom Adegboruwa sends SOS to Sanwo-Olu over Ikoyi Cancer Treatment Center Nigerian Prof. dismissed by Ghana varsity opens up Man who married two sisters commits suicide over adultery Call your violent members to order, CAN tells Miyetti-Allah Immigration officer, 14 others in EFCC net for alleged passport racketeering Abia Poly begins online publication of results El-Rufai appoints new Accountant-General, DG KADGIS


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (509,728 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (431,451 views) Shameless Genevieve Nnaji exposes breasts in public (373,384 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (316,683 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (282,409 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (247,163 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (239,179 views) 10 cars more expensive than Jets (223,572 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (221,165 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (208,714 views) Lagos plane crash: Journalist releases victims’ names (188,312 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (186,945 views)


NLNG Job Vacancy

CBN banner advert

UBA Wise Savers Promo


Categories Advertorials (3) African Press Organisation (81) Art & Literature (97) Business & Economy (4,356) Business Verdict (76) Columnists (1,074) Complaints & Requests (95) Enterprise & Opportunities (211) Entertainment (635) Features (779) Global Business Monitor (396) ICT Monitor (53) International (3,723) Interview (192) Live Commentary (30) Love Matters (163) Maggie's Blog (342) News (48,805) Opinion (1,290) Pidgin (17) Politics (11,167) Religion (1,051) Sports (2,101) Stock Watch (39) AMA & Al Jazeera Global Update






APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera