Afreximbank, Stakeholders To Meet On Trade Finance

afreximbank buildingThe African Export-Import Bank (Afreximbank) says it will meet with legislators and regulators from West and Central Africa on June 13 on the development of factoring in Africa.
A statement by the bank on Tuesday in Lagos said the meeting would hold at the Radisson Blu Anchorage Hotel, Lagos.
It quoted the bank’s President, Jean-Louis Ekra, as saying that the meeting was to empower African countries to take full advantage of the many benefits of factoring as a trade finance instrument.
It said the seminar would help to heighten awareness about factoring in Africa and begin the groundwork toward a facilitative legal and regulatory environment across the continent.
“It will also give impetus to Afreximbank’s work on the design and introduction of a model best practice factoring law for Africa.
“Besides, it provides businesses with access to credit without the requirement for collaterals because it is backed only by the normal receivables generated in the regular course of business.
“Factoring has emerged as a very important tool for promoting non-commodity exports and for support of small and medium scale enterprises.
“In today’s highly competitive world, this tool has the potential to place African businesses at near equal footing with the other parts of the global market,” the statement said.
It added that the seminar would feature a presentation by David Tatge of the law firm of Epstein Becker Green of the U.S.
The statement said Erik Timmermans, Secretary-General of the International Factors Group, would talk on legal and regulatory aspects of factoring.
Peter Brinsley of the consulting firm, PointForward, will deliver a paper on factoring concepts.
It said that Central Bank Governors, Heads of National Stock Exchanges and representatives of factoring companies and law firms from 15 countries in West and Central Africa would take part in the workshop.
Afreximbank is the foremost Pan-African multilateral financial institution devoted to financing and promoting intra-and extra-African trade.
The bank was established in October 1993 by African governments, African private and institutional investors and non-African investors.
Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organisation and the Charter, which governs its corporate structure and operations.
Since 1994, Afreximbank has approved almost 30 billion dollars in credit facilities for African businesses, including about 3.5 billion dollars in 2013.