Cairo, 10 November 2022 – As part of its factoring capacity building initiative and advocacy efforts for the creation of a conducive legal and regulatory infrastructure in support of factoring, African Export-Import Bank (Afreximbank) was pleased to facilitate a factoring study tour for Nigerian regulators and stakeholders in Egypt.
The objective of the tour was for Nigerian regulators to learn from Egypt’s experience in building a facilitative legal and regulatory environment, which had made Egypt amongst the top-ranking African countries in terms of factoring volumes. The need for the tour arose from a Focus Group discussion on a diagnostic report on the establishment of a regulatory framework for factoring industry in Nigeria sponsored by GIZ, a German Development Agency. The report highlighted the need to address the legal and regulatory challenges of factoring in Nigeria.
Nine delegates joined the tour from Central Bank of Nigeria (CBN) and Nigerian Export-Import Bank (NEXIM).
The tour commenced with a Factoring Workshop organised by Afreximbank, the Egyptian Factoring Federation and FCI on 24th October 2022 at the St. Regis Hotel, Nile Corniche, Bulaq, Cairo. The workshop, themed “Empowering Sustainable Trade Flows with Factoring – Facilitation of Egyptian Trade in Difficult Times” discussed the importance of factoring in stimulating economic development in Africa specifically, highlighting examples of proven solutions implemented by Afreximbank and partners to promote factoring services in Africa, among others.
The workshop was followed by visits of the delegates to the Financial Regulatory Authority (FRA) and Central Bank of Egypt (CBE). During the visits, the delegates learned how FRA and CBE developed facilitative regulations and policy intervention mechanisms that have ensured the growth of factoring in Egypt. The delegates also visited Afreximbank, where they met with Mrs. Kanayo Awani, Executive Vice President Intra-African Trade Bank and members of the Bank’s Factoring Working Group. The delegates were taken through the Bank’s factoring strategy and the various initiatives being implemented by the Bank in support of SMEs. They were also given a tour of the Bank’s Museum. In addition, the delegation held meetings with Egyptian Factors and members of the Egyptian Factoring Federation (EFF) at Smart Village, Cairo.
Afreximbank continues to promote factoring as a viable financing option for SMEs in the continent. In Nigeria, it will continue to work with key stakeholders like NEXIM, CBNFSS2020, the Nigerian Factoring working Group to broaden engagements and advocacy for the introduction and growth of factoring services in Nigeria.
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About Afreximbank
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Afreximbank is working with the AU and the AfCFTA Secretariat to develop an Adjustment Facility to support countries in effectively participating in the AfCFTA. At the end of 2021, the Bank’s total assets and guarantees stood at about US$25 billion, and its shareholder funds amounted to US$4 billion. Afreximbank disbursed more than US$51 billion between 2016 and 2021. The Bank has ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.afreximbank.com.