Afreximbank Signs Factoring Deals of EUR 23 million to Boost Factoring in Africa

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.

Source: Afreximbank