PRESS RELEASE

Afreximbank congratulates the Republic of Congo as it adopts Factoring Law

Cairo, 14 March 2022: – African Export-Import Bank (Afreximbank) announced that the Republic of Congo has enacted a factoring law to support business activities. The Bank congratulated the Republic of Congo saying that the move constitutes a critical milestone in  its efforts to increase Africa’s share of global factoring volumes from its current level of around 1%.

Factoring offers an alternative trade finance instrument to African firms especially SMEs, and therefore this enabling law will provide a major boost to the development and growth of  SMEs in the Republic of Congo. By creating a legal infrastructure which supports diversification of SME financing, and provides credibility and assurance to investors, the law  significantly facilitates access to finance for previously excluded small and medium sized businesses in the Republic of Congo. Moreover, the Republic of Congo’s initiative  will serve as a model to Central African States in particular, and other African States who are yet to enact a law on factoring, by demonstrating the benefits of such legal reforms.  

Commenting on the news, Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, 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.”

Afreximbank’s Factoring Working Group, led by Ms. Kanayo Awani, Managing Director of the Bank’s Intra African Trade Initiative, played a pivotal role in the development of the law. The Bank’s Factoring Model Law served as a guide to legislators as they developed and promulgated the Republic of Congo’s law. The Bank played a central role in the review and drafting process.

The National Office of the Banque des Etats de I'Afrique Centrale (BEAC), the Banque Postale du Congo and the World Bank are also acknowledged for their significant contributions and key roles.