Afreximbank Ties Factoring’s Growth in Africa to Strengthened Legislation
African countries must implement strong legislation to foster the growth of factoring in order to enhance access of the continent’s small and medium-sized enterprises (SMEs).African countries must implement strong legislation to foster the growth of factoring in order to enhance access of the continent's small and medium-sized enterprises (SMEs) to much-needed finance, participants at a sensitizaton seminar discussing Afreximbank's Model Law on Factoring heard
in Nairobi. The seminar, organized by the African Export-Import Bank (Afreximbank) for the financial community, legal practitioners and legislators in East Africa in the wake of last year's launch of the Model Law, discussed the best ways to develop legal frameworks for factoring using the law. "Strengthening legislation is critical to promoting the growth of factoring," said Kanayo Awani, Managing Director of Afreximbank's Intra-African Trade Initiative and Chairman of the Africa Chapter of Factors Chain International (FCI), in an address to the participants. According to Ms Awani, factoring can be the game-changer in terms of addressing the issue of limited access to finance faced by Africa's SMEs. To access the full article, please click here.