At the start of 2023, which begins with a certain number of very symbolic activities which are announced in the factoring industry in Africa, everyone has their eyes riveted on the next holding of the 55th FCI annual meeting. which is scheduled from 17 to 21 September 2023 in Marrakech, Morocco. The last time an event of this magnitude took place in Cape Town in South Africa, was 7 years ago in 2016. To understand the importance and impact of this event, it is necessary to take a retro-look at the perspective of the activities and actions carried out during the last year by FCI and, in particular, our Chairman, Mrs Daniela Bonzanini and Secretary General, Mr Peter Mulroy. Therefore, his 1st official trip to Africa dates back to January 30, 2014, in Accra in, Ghana, which was at the start of his first term 10 years ago. As well as Afreximbank, its historical partner of the FCI Africa Chapter, for the initiative to promote factoring in Africa for several years.
The year 2022 was marked by a consolidation of achievements with the adoption of laws on factoring by several 4 countries such as Togo, Niger, Burkina-Faso, and Mali, and it should be noted that these countries were preceded by Egypt in 2018 and Congo in 2021. Other major countries will follow this momentum, such as Côte d’Ivoire, Senegal, Guinea-Bissau, Nigeria and Kenya. Some countries have already opened the door by introducing into the newly passed banking laws the legal mechanism which recognizes Factoring as a financial product; this is the case of Madagascar and the DRC.
During the same year, FCI launched an initiative to co-opt nearly 13 ambassadors among its members in several African countries such as Egypt, Tunisia, Morocco, Senegal, Ivory Coast, Nigeria, Cameroon, Congo, Kenya, Botswana, Zimbabwe, South Africa and Mauritius. Their role is to execute the FCI regional strategy for Africa, provide regular Factoring Market development reports and advocacy on Factoring, and Mobilize Factors to support and participate in FCI and Afreximbank Factoring Strategy and events. To date, we registered 2022 up to 47 members despite some cancellations, and the short-term objective is to reach the symbolic figure of 50 members by the end of 2023. It should be noted that at the same period, the IFC subsidiary of the World Bank has carried out and published several studies of potential opportunities in Factoring and SCF that may exist in Africa. The study revealed for the first time in Africa the potential in volume for the following countries like Nigeria ($27.8 billion), Kenya ($28.7 billion), Côte d’Ivoire ($6.5 billion) and Morocco ($8 billion). These studies sufficiently show the potential that exists and the opportunities in the major countries that are models of economic and financial development in Africa after South Africa and Egypt.
In terms of training, promotion and capacity building in Factoring, thanks to the FAPA grant received from Afreximbank and the AfDB in the region, we have organized webinar workshops for Banks and Factors on the theme of how to launch factoring activities and over two days, we recorded strong attendance records of nearly 250 people online and permanently. Regarding the FCI E-learning, training took place on various themes with nearly 150 participants and 43 participants for the certification on Trade Finance in Africa (COTFIA). In terms of consulting for capacity building, we have trained nearly 7 banks and factors in Africa to have the necessary tools to launch the factoring activity.
Finally, in view of all the above, the year appears to be a year of particular importance for FCI and for factoring in Africa with the consolidation of all the actions and promotion and capacity-building activities that have been carried out. For the past ten years, through the Africa chapter of FCI in partnership with Afreximbank. First, this is by the importance of the event, which will take place on the African continent, and which will bring together more than 400 delegates members of FCI or not coming from all over the world and hope for a strong African participation which is expected.
This year will be marked by a strong mobilization of promotion and launch activities expected from factoring projects in countries such as Nigeria, DRC, Ivory Coast, Morocco, and Kenya. This through a webinar which will be organized at the continental level for the promotion of this event and will be followed by the regional conference, which will be organized in Dakar, Senegal, in June 2023, where the participants will be exclusively banks and factors of more than 15 African countries and many other activities will be organized to mark this event.
In light of the achievements of recent years, the activities carried out, and the events planned for this year, 2023, these lay the groundwork for an embryonic industry which is taking shape for better development and its flight for a promising future for the Factoring industry in Africa.
This article was written by Mr Nassourou Aminou, FCI Regional Manager Africa, for the February 2023 edition of the FCI In-Sight Newsletter.
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