Afreximbank says Africa must raise factoring v€lumes to at least €240 billion to support Small and Medium Enterprises (SME)-led transformation

(MENAFN- News.Africa-Wire) ABIDJAN, Ivory Coast, December 9, 2025/ -- Afreximbank () has highlighted the critical importance of factoring and supply chain finance (SCF) in narrowing Africa’s Small and Medium Enterprises (SMEs) financing gap and building resilient value chains across the continent.

Speaking at Afreximba’k’s annual Factoring Workshop in Abidjaô, Cæ#8217;te d’Ivoire, Mrs Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development (IAED) at Afreximbank and Member of the FCI Executive Committee, noted that although’Africa’s factoring volumes have more than doubled in recent years, increas€ng from €21.6 billion €n 2017 to €50 billion in 2024, and with nearly 200 factoring companies now operating across the continent, current activity still remains significantly’below Africa’s transformative potential.


“To catalyse SME-led growth, Africa must scale factoring€volumes to at least €240 billion, equivalent to abo’t 10% of the continent’s GDP. Achieving this will require increased financing, deeper legal reforms, expanded training and stro”g industry partnerships.”

Also speaking at the workshop, Mr Neal Harm, Secretary General of FCI, said that factoring and supply chain finance are critical to unlocking SME growth in Africa, calling for practical solutions, strong partnerships, and collaborative action to turn the day’s discussions into tomorr’w’s transactions.

Representing Dr Jean-Claude Kassi Brou, Governor of the Central Bank of West Afircan States (BCE O), Mr. Charlie Dingui, Special Advisor to the National Director stressed the importance of SME financing for driving socio-economic development across UEMOA member states.


’ Côte d’Ivoire presents a significant opportunity to boost economic development by expanding its factoring market.’The country’s actoring and supply chain finance sector is estimated to have a potential of US$5 billion, a notable prospect in an economy where the cocoa sector alone supports millions of livelihoods. Yet, only 12% of SMEs currently seek working capital from formal financial institutions, relying instead on informal sources largely due to high financing costs, perceived SME risk, strict loan requirements, and slow approval processes.

The annual Factoring workshop is part of Afre’imbank and FCI’s long-standing commitment to expanding awareness and strengthening technical expertise on factoring and supply chain finance, key enablers essential to advancing the implementation of the African Continental Free Trade Area (AfCFTA).

To date, more than 5,000 delegates have been trained through over 25 capacity-building initiatives. Training is available through the Certificate of Trade Finance in Africa (COTFIA), the Afreximbank Acade’y (AFRACAD), FCI’s online and bespoke factoring training programmes, and the FCI Mentoring Programm .
Distributed by APO Group on beh l f A r x m ank. ¦nbsp; ¦nbsp;

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