Africa must significantly boost its factoring volumes to at least €240 billion to close the continent’s SME financing gap and drive transformative economic growth, the African Export-Import Bank (Afreximbank) has stated.
Speaking at Afreximbank’s annual Factoring Workshop in Abidjan, Mrs. Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development (IAED) and Member of the FCI Executive Committee, highlighted the critical role of factoring and supply chain finance (SCF) in strengthening Africa’s SMEs and building resilient value chains.
“Africa’s factoring volumes have more than doubled in recent years, rising from €21.6 billion in 2017 to €50 billion in 2024, with nearly 200 factoring companies now active across the continent. Yet, this is far below the continent’s transformative potential,” Mrs. Awani said. “SMEs represent over 90% of Africa’s businesses and contribute more than 60% to employment and GDP, yet they face a financing gap estimated at US$300 billion annually. To unlock SME-led growth, factoring volumes must reach €240 billion, approximately 10% of Africa’s GDP. Achieving this will require enhanced financing, legal reforms, capacity building, and strategic partnerships.”
Factoring allows businesses to convert accounts receivable into immediate liquidity, improving cash flow and stimulating growth, particularly critical in regions where long payment delays and collection challenges hinder business operations.
Mr. Neal Harm, Secretary General of the FCI, reinforced the significance of factoring and SCF for Africa’s SME sector. He emphasized the need for practical solutions, stronger partnerships, and collaborative action to translate workshop discussions into tangible economic outcomes.
Representing Dr. Jean-Claude Kassi Brou, Governor of the Central Bank of West African States (BCEAO), Mr. Charlie Dingui, Special Advisor to the National Director, highlighted the importance of SME financing for socio-economic development across UEMOA member states. “Factoring is a vital tool for improving business liquidity and stimulating growth, especially in environments where traditional financing is slow or inaccessible,” he said.
Côte d’Ivoire, with its significant economic potential, offers a prime opportunity to expand factoring markets. The country’s factoring and SCF sector could reach US$5 billion, a critical growth area in an economy where the cocoa sector alone sustains millions of livelihoods. Yet, only 12% of SMEs currently access formal working capital, with most relying on informal financing due to high costs, strict loan requirements, and slow approval processes.
Afreximbank and FCI’s annual Factoring Workshop forms part of their broader mission to raise awareness and strengthen technical expertise in factoring and SCF, which are essential for the successful implementation of the African Continental Free Trade Area (AfCFTA). Over 5,000 delegates have been trained through more than 25 capacity-building initiatives, including the Certificate of Trade Finance in Africa (COTFIA), Afreximbank Academy (AFRACAD), FCI’s online and bespoke training programs, and the FCI Mentoring Programme.
