Afreximbank offers a comprehensive and expanding range of trade finance programmes to finance, and facilitate finance, that will support and enable intra- and extra-African trade.
The Bank’s Trade Finance programmes include:
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Structured Trade Finance
The Structured Trade Finance scheme covers both exports and imports and is comprised of programs and facilities designed to address both the market and product diversification problems that Africa faces. It is intended to remove bottlenecks to the trading of products already produced or near production and able to enter trade. Structured trade finance facilities
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Note Purchase Program
Through the Note Purchase Program, the Bank provides financing to corporates via the purchase of promissory notes or similar instruments issued or accepted by them and avalized or guaranteed by an acceptable bank or other corporates. The use of the Note Purchase Program has slowed in recent years for many reasons, especially the Bank’s long
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Receivables Purchase / Discounting Program
The Receivables Purchase/Discounting Program comprises a family of facilities involving the purchase of specific, or groups of, receivables from the sale of goods and services to foreign or domestic buyers, with or without recourse to the seller. The facilities operated under this program are: Forfaiting, Invoice/Receivables Discounting, Factoring and Receivables Management, and Joint Bill Discounting/Financing
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Asset-Backed Lending Program
The Asset-Backed Lending Program helps meet African entrepreneurs’ growing demand for financing to acquire physical assets within the framework of privatization and local-content promotion opportunities. One of the advantages of this program is that the assets can serve as solid collateral, as their values are normally expected to rise with inflation.
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Country Programs
The Bank uses Country Programs to assist its member countries in peculiar circumstances which are not amenable to solutions offered by any one of the products on the Bank’s menu. The programs may be designed to assist a country undergoing economic difficulties or to support the economic development strategy of a country calling for a
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Factoring
Factoring is a service involving the purchase by a financial institution, called a Factor, of receivables due to exporters / suppliers (sellers) by their customers (buyers), with the Factor assuming full credit and collection responsibilities. In other words, Factoring is a financial transaction whereby an exporter/supplier sells its accounts receivable (i.e. invoices) to a third party