|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|
|DAC Sector Code||32130|
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.
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.
The project beneficiaries are African Export-Import Bank (Afreximbank) as well as SMEs in Africa.
Fund for African Private Sector Assistance
African Export-Import Bank
|Last Update||20 Oct 2020|