Dakar, 13 June 2023: – The African Export-Import Bank (Afreximbank) is ramping up support for factoring in Africa with the signing of deals to provide lines of credit totaling EUR 23 million to enable factoring companies expand their factoring activities in Africa.
The signing took place on the sidelines of the Regional Conference on Factoring, Receivables Finance and Credit Insurance in West Africa, held in Dakar from 7 to 9 June 2023. The benefactors of the factoring facilities were Senegal-based Banque Nationale Pour Le Developpement Economique (BNDE) and Fidelis Finance-Burkina Faso (FFB).
Kanayo Awani, Executive Vice President, Intra-African Trade Bank, signed both documents for Afreximbank while Abdoulaye Niane, Chief Executive of BNDE, signed for BNDE and Romaric Rouamba, Deputy CEO of Fidelis Finance-Burkina Faso, signed on behalf of the company.
The facility being extended by Afreximbank will enable BNDE and FFB to “factor supplier invoices accepted by eligible buyers”.
The facility terms describe eligible buyers as a group of private or governmental entities with which the suppliers have transacted for the sale of goods or services that has resulted in the buyers’ obligation to pay suppliers.
They also describe eligible suppliers as a group of companies located in Africa each of which has executed a recourse or a non-recourse factoring agreement with the factoring company.
The three-day regional conference, co-organised by Afreximbank, FCI and COFEB-BCEAO, attracted more than 150 participants from across West Africa. Discussions centered around the world of factoring; what, where and how to use the product; the legal and regulatory requirements; the credit insurance landscape; the role of digitalization in the industry; and more.
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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. For 30 years, the Bank has been deploying 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. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”).
For more information, visit: www.afreximbank.com