AFRICA NEEDS FACILITATING INFRASTRUCTURE TO TAP €200-BILLION FACTORING GROWTH, AFRICA EXPORT-IMPORT BANK.

The African Export-Import Bank (Afreximbank) says the continent must put in place facilitating legal and regulatory infrastructure to enable it absorb opportunities associated with factoring volume expected to reach 200 billion Euros in 2020.

Kanayo Awani Managing Director of the Intra-African at Afreximbank says there must also be an expansion of credit insurance, attraction of international factors into Africa, training, and support from governments.

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 According to the statistics Africa’s factoring volumes, which stood at 24 billion Euros in 2012 would grow to 90 billion Euros in 2017 and 200 billion Euros by 2020, and Ms. Awani, said that there must be improved regulatory reforms and creation of awareness for the continent to reap the full benefits of that growth.In addition to provision of lines of credit to factors, Afreximbank had also been engaged in raising awareness about factoring through educational activities and in fostering the creation of facilitative infrastructure across Africa.

Ms. Awani who is also Chairperson of the Africa Chapter of the International Factors Group, which recently signed an agreement with Factors Chain International forming a single organization, was speaking during the sensitization seminar organized by Afreximbank to promote the Model Law on Factoring that was drafted to guide African countries in preparing national factoring laws.

She notes that because of the very limited knowledge of factoring in Africa, there had been little efforts by governments and global factoring groups to promote it.

She announced that, since 2011, Afreximbank had approved $83 million for factors in Africa and that it was currently assessing factoring lines totalling $90 million.

Ms. Awani added that in addition to provision of lines of credit to factors, Afreximbank had also been engaged in raising awareness about factoring through educational activities and in fostering the creation of facilitative infrastructure across Africa.