By Lucy Ogalue
The African Export-Import Bank (Afreximbank) says ‘factoring’, a form of financial transaction, is a viable and sustainable solution that will address access to finance for Africa’s Small and Medium Enterprises (SMEs).
Ms Kanayo Awani, Managing Director of the Intra-African Trade Initiative at Afreximbank, said this in a statement by Afreximbank’s Head of Media, Mr Obi Emekekwue, on Monday in Abuja.
Factoring is also a type of debtor finance in which a business sells its accounts receivable to a third party called a factor at a discount.
Emekekwue said the bank’s managing director spoke at a factoring promotion conference in Gaborone.
According to Awani, access to affordable finance hinders the growth of Africa’s SMEs and Factoring, a form of trade finance will provide a solution to address the SMEs financing gap.
She said that it would help innovative SMEs to grow and also support…
Source: News Agency of Nigeria