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

By Lucy Ogalue on 19/03/2019

Views: 296


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...
Bayelsa records 1,000 oil spills in one single...

Court upholds National Assembly's power to re-oder election...

Kidnappers of Ondo Monarch’s wife demand N20m ransom...

If President Buhari were a patriot…, By Benjamin...

FRSC expresses worry over high rate of auto...

Garba-Yusuf cautions youths against election violence

Politics and the resurgence of violence in Rivers...

Two sisters die after undergoing FGM

Flight delayed, PILOT arrested for being DRUNK shortly...

IYC alleges plot to destabilise Bayelsa •Decries posting...

NAFDAC arrests nursing mother, 7 others over adulterated...

Universal health coverage a right, says Saraki


Latest News BREAKING: Trailer crushes woman to death inside her shop in Lagos, man injured Journalist slumps on dance floor, confirmed dead in hospital Murder of Fasoranti’s Daughter: Nigeria’s cup has become full, says Pastor Bakare Final year varsity student jumps from 2-storey building After God, Otedola next in my life — Christian Chukwu 90 cult suspects, car snatchers in police net Igbo leaders descend on Orji Kalu for supporting Ruga 11-year-old student to represent Nigeria at anti-corruption conference in Vienna I’ll win Kogi APC primary whether direct or indirect — Prince Audu SEAMATA demands probe of fire incident in Amaigbo Market Enugu Unknown gunmen abduct varsity don We have land for industries not cow colony, Isoko group tells FG


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (506,824 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (430,595 views) Shameless Genevieve Nnaji exposes breasts in public (372,150 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (316,098 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (281,387 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (246,740 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (238,231 views) 10 cars more expensive than Jets (221,581 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (220,379 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (208,094 views) Lagos plane crash: Journalist releases victims’ names (187,772 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (186,480 views)


NNPC 2019 National Science Quiz Competition

CBN banner advert

UBA Wise Savers Promo


Categories Advertorials (3) African Press Organisation (81) Art & Literature (96) Business & Economy (4,351) Business Verdict (76) Columnists (1,070) Complaints & Requests (95) Enterprise & Opportunities (210) Entertainment (633) Features (776) Global Business Monitor (394) ICT Monitor (53) International (3,709) Interview (192) Live Commentary (30) Love Matters (163) Maggie's Blog (334) News (48,624) Opinion (1,288) Pidgin (17) Politics (11,151) Religion (1,048) Sports (2,094) Stock Watch (39) AMA & Al Jazeera Global Update






APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera