Peter Uzoho
The African Export-Import Bank (Afreximbank) has made case for factoring as a viable and sustainable solution to address the challenge of access to financing which is hindering the growth of Africa’s small and medium-scale enterprises (SMEs).
The Managing Director of the Intra-African Trade Initiative at Afreximbank, Kanayo Awani, said this during a factoring promotion conference held in Gaborone that factoring, a form of trade finance provided a solution to address the SME financing gap and would help innovative SMEs to grow and support Africa’s structural transformation and trade development.
Awani, who noted that access to appropriate and affordable finance had been frequently cited as a major obstacle for SMEs, explained that factoring was an important alternative to other trade financing sources, such as bank loans.
Despite its huge opportunities, however, factoring had not yet taken off fully in Africa, with the region accounting…
