The African Export-Import Bank (Afreximbank) has sealed $500,000 pact with the African Development Bank to support African Private Sector Assistance (FAPA) programme. The fund will be used in supporting emerging factoring firms in Africa.
The agreement, signed at the Afreximbank Annual Meetings and 25th Anniversary Celebrations in Abuja, is aimed at upgrading the capacity and skill-sets of up to 20 emerging factoring firms and providing advisory services to enhance the sustainability of established growth-orientated factoring firms, regulators, financial institutions and business and trade associations in Africa.
Managing Director, Intra-African Trade, Kanayo Awani, signed on behalf of Afreximbank while Ebrima FAAL, Senior Director, Nigeria Country Office, signed for the African Development Bank, in the presence of Elfriede Geisler, Chargé d’Affaires, Embassy of Austria in Nigeria, and Yutaka Kikuta, Ambassador of Japan to Nigeria, who represented the FAPA donor countries.
President of Afreximbank, Benedict Oramah said: “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. Afreximbank sees factoring as a solution to bridge the funding gap facing SMEs, and the agreement will support our strategy to grow Intra-African trade and facilitate greater SME contribution to regional and global supply chains.”