Windhoek, Namibia: – Continuing its drive to transform Africa’s financing landscape to ensure the growth of small businesses, African Export-Import Bank (Afreximbank) hosted a one-day Factoring Workshop with FCI, on the side-lines of the Annual Trade Finance Seminar held in Windhoek, Namibia. The Workshop was aimed at helping place Africa’s small and medium-sized enterprises (SMEs) at the centre of the continent’s trade and economic development agenda.
Addressing the workshop participants Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, Afreximbank, noted:
“Factoring in Africa has grown significantly, with volumes rising from €16 to over €47 billion in the past fifteen years. Participating countries have expanded from three (3) to eighteen (18), and the number of factoring companies now stands at 185, showcasing its transformative potential for economic growth and investment opportunities.”
Mrs. Awani further observed that as an efficient short-term financing solution globally, factoring is evolving with automation, blockchain, and other cutting-edge technologies.
“Embracing these advancements is crucial to expanding access and unlocking the full potential of factoring across the continent.” She added.
Neal Harm, Secretary General of FCI, welcomed Afreximbank’s effort which helped FCI to grow across Africa, saying that FCI works to provide its members with access to financial support across the world – strengthening the global financial supply chain.
“FCI has implemented rules and guidelines that have strengthened the financial supply chain for our members and their clients and has resulted in financial institutions seeing the value in accounts receivable for trade finance,” said Mr. Harm.
While speaking at the event, Marsorry Ickua, Officer-in-Charge of the Bank of Namibia, said that, because of its flexibility and efficiency in allowing businesses to unlock liquidity by selling their accounts receivables at a discount and gaining immediate cash flow, factoring was a powerful tool for SMEs as it enabled them to continue operations, grow and even engage in cross-border trade without the burden of traditional credit hurdles.
He commended Afreximbank’s action in extending factoring lines to Southern African SMEs as a testament to the power of regional collaboration, noting that, through its factoring facilities and innovative financing, the Bank was contributing to a more sustainable and inclusive financial ecosystem for the SMEs.
The workshop was organised in the context of Afreximbank’s mission to facilitate supply chain and receivables finance, particularly in extending alternative financing to SMEs. The Bank has led the charge in the promotion and development of factoring on in Africa.
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