On Tuesday, the African Export-Import Bank (Afreximbank) has urged all African SMEs to engage factoring as a viable and sustainable solution to address the challenge of access to financing for their businesses.
Director and Global Head of Communications and Events Management at Afreximbank, Mr Obi Emekekwue, has made this known in an issued statement.
Emekekwue quoted Ms Kanayo Awani, Managing Director of the Intra-African Trade Initiative at Afreximbank, as saying that poor engagement of factoring had hindered the growth of Africa’s Small and Medium-scale enterprises (SMEs).
Awani also said: “Other factors that could raise factoring volumes include emergence of innovative industries supported by technological advancements; 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 has facilitated the growth of factoring in Africa through various interventions, including supporting the creation of a facilitative legal and regulatory environment for factoring.
“It has provided finance and guarantees to factoring companies; provision of technical assistance; and formation of strategic partnerships to promote the development of factoring.”