By Destiny Eseaga
Entrepreneurs have been advised to consider innovative financial solutions like factoring and credit insurance to grow their business and enhance regional integration.
The advice was given at a one-day workshop on factoring organized by the African Export-Import Bank (Afreximbank), in collaboration with Factors Chain International (FCI) and the African Capacity Building Foundation (ACBF), as part of the bank’s annual Structured Trade Finance Seminar to support SMEs in Africa.
The bank noted that this year’s event centered on the basic tenets of factoring, the role of credit insurance in unlocking access to finance for SMEs and the best ways to promote the development of the two financial instruments to support economic growth and regional integration in Africa.
Addressing participants, Managing Director of Intra-African Trade Initiatives at Afreximbank and Chairman of African Chapter of FCI, Kanayo Awani, said: “Despite new market opportunities opened up by the process of globalization and increased regional integration, SMEs continue to be constrained due to their lack of resources, their difficulties in achieving economies of scale and the higher transaction costs they face compared to large firms.