The African Export-Import Bank (Afreximbank) has signed an agreement under which the African Development Bank will grant a $ 500,000 grant from its African Private Sector Support Fund (APAF) to support the new factoring companies in Africa.
The agreement, signed at Annual General Meetings and the celebration of Afreximbank’s 25th anniversary in Abuja on July 13, aims to increase the capacity and skills of up to 20 new factoring companies and provide consulting services. to improve the viability of established growth-oriented factoring companies, regulators, financial institutions and trade associations in Africa.
Kanayo Awani, Director General, Intra-African Trade, signed on behalf of Afreximbank while Ebrima FAAL, Director, Nigeria Office, signed on behalf of the African Development Bank, in the presence of Elfriede Geisler, Chargé d. ‘Affairs, Austrian Embassy in Nigeria, and Yutaka Kikuta, Ambassador of Japan to Nigeria, who represented the FAPA donor countries.
Regarding the agreement, Dr. Benedict Oramah, President of Afreximbank, said: “SMEs in Africa have, for a long time, had difficulty accessing external financing for their activities. This hampered their growth and prevented them from seizing commercial opportunities. Afreximbank views factoring as a way of closing the SME financing gap, and the agreement will support our strategy to expand intra-African trade and facilitate the participation of SMEs in regional and international supply chains. ”
“We support the development of factoring in Africa, and we favor credit lines to factors, capacity building workshops, regulatory and policy information, advisory services and technical assistance to promote good practice. This agreement with the AfDB, and the FAPA grant, will enhance the availability of effective factoring services on the continent and make them better known to SMEs, “he added.
The grant will finance:
- Capacity-building tailored to needs, including workplace training, implementation of administrative management systems, provision of customized marketing manuals, credit and risk policies, financing and activities, in addition to advisory services to well-established factoring companies and a platform for African factoring companies to exchange ideas and share best practices.
- The establishment of a sustainable training and knowledge platform, including online training, workshops and the Certificate on International Trade Finance that will be obtained after four weeks of factoring training in the field of part of a program designed by the University of Malta.
- Project management coordination to ensure the timely implementation of projects.
More than 100 speakers, including Heads of State, Ministers, Central Bank Governors, Directors of International Trade Organizations, Business Leaders, African and International Business Development Experts, and Researchers , spoke during the four days of the Assemblies.
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