50 Years Facilitating Open Account - Trade Finance

Afreximbank and FCI hold successful Promotion Conference in Douala, Cameroon 30-31 March 2017

Wednesday 5 April 2017

Factoring services can bridge the gap in the financing of small and medium-sized enterprises (SMEs) in Africa by addressing the challenges the SMEs face in accessing funding for business activities, Kanayo Awani, Managing Director of the Intra-African Trade Initiative of the African Export-Import Bank (Afreximbank) and Chairperson of FCI’s Africa Chapter, has said in Douala, Cameroon.

Ms. Awani, who was speaking on 30 March during the opening of a two-day factoring promotion seminar organised by Afreximbank and FCI, said that the effectiveness and potential of factoring services to support SMEs became even higher during periods of financial distress and that, because of its unique features, factoring was well-suited for facilitating financial inclusion of SMEs.

Cameroon is among African countries where new factors are emerging and its factoring volumes reached about €40 million in 2016.

In addition to providing networking opportunities for international and sub-regional factoring practitioners, the seminar introduced participants to the principles, mechanics, risks and benefits of factoring using case studies and success stories. The Afreximbank Model Law on Factoring was also explained to participants, highlighting the ways in which it could be adapted to suit different local regulatory environments.

FCI Chairman Cagatay Baydar welcomed the participants and shared the success story of Factoring in Turkey. FCI Secretary General Peter Mulroy and FCI Deputy Secretary General Erik Timmermans introduced the audience to the World of Factoring, Cross-Border Factoring and FCI’s new Supply Chain Finance initiative. On the second day, they organized a role play during which the audience could better understand how international factoring works.

More than 150 finance professionals, legal practitioners, corporates and SMEs from Cameroon, the Central Africa region and beyond attended the event.

The seminar follows similar factoring promotion and capacity-building events organised by Afreximbank in cooperation with FCI in Egypt, Ghana, Nigeria, Tanzania, Kenya, Zambia and Mauritius.