Multinational - Afrexim Bank - Regional promotion of factoring in Africa


Project Summary

Approval Date 22 Mar 2018
Signature Date 03 Oct 2018
Planned Completion Date 30 Jun 2021
Last Disbursement Planned Date 02 Jan 2022
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 32130
Commitment U.A 259,657.83
Status Implementation

Project General Description

The proposed project is a US$500,000 grant from African Private Sector Assistance (FAPA) to support the development of factoring firms in Africa. The project is aimed at promoting the development of ‘factoring’ as an alternative trade finance instrument in Africa. The investment confirms the African Development Bank’s commitment to support extra- and intra-Africa trade promotion. Indeed, SMEs in Africa have long faced real difficulties accessing external finance for their business activities and this has impeded their growth and prevented them pursuing commercial opportunities. The African Export-Import Bank (Afreximbank) sees factoring as a solution to bridge the funding gap facing SMEs, and the agreement will support its strategy to grow intra-African trade and facilitate greater SME contribution to regional and global supply chains. Afreximbank has become a reputable and solid regional development finance institution, meeting significant financing needs in trade development and trade finance in Africa. Afreximbank will contribute US$450,000 towards the technical assistance project. This is especially so in the trade finance space.

Project Objectives

This investment is intended to finance the capacity building of a number of identified emerging factoring firms, advisory support among established factoring firms and development of a sustainable knowledge and learning platform to support factoring on the African continent.

Beneficiaries

The project beneficiaries are African Export-Import Bank (Afreximbank) as well as SMEs in Africa.

Participating Organization

Funding
Fund for African Private Sector Assistance
Implementing
African Export-Import Bank

Information

IATI identifier 46002-P-Z1-KB0-016
Last Update 20 Mar 2020

Export

Contact Details

Email fapa@afdb.org

Geographic Location

Country Multinational