The African Export-Import Bank (Afreximbank), has congratulated the Republic of Congo for adopting the “Factoring Law” to support business activities.
According to the bank, the move is a critical milestone in its efforts to increase Africa’s share of global factoring volumes from its current level of about one per cent.
Afreximbank’s Media Contact, Amadou Sall gave the commendation in a statement made available to newsmen on Monday in Abuja.
Sall said that the factoring law offers an alternative trade finance instrument to African firms, especially Small and Medium Enterprises (SMEs).
He said that the law would provide a major boost to the development and growth of SMEs in the Republic of Congo.
Sall said that the legal infrastructure supports diversification of SMEs financing, as well as provides credibility and assurance to investors.
According to him, the law significantly facilitates access to finance for previously excluded small and medium businesses in the Republic of Congo.
Sall said that the Republic of Congo’s initiative would serve as a model to Central African states in particular, and other African states that were yet to enact a law on factoring, by demonstrating the benefits of such legal reforms.
He said that the President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, said “the Republic of Congo’s adoption of the Factoring Law represents a major step forward for Africa’s thriving SMEs, and broadens financial options to them.
“The adoption of the law will act as a catalyst to the growth of factoring in Congo. We are delighted that the Congolese Government is championing innovative ways of doing business and promoting financial inclusiveness.
“We are proud of our role in facilitating this process,” Oramah said.
Sall said that Afreximbank’s Factoring Working Group, led by Miss Kanayo Awani, the Managing Director of the Bank’s Intra African Trade Initiative, played a pivotal role in the development of the law.