African Export -Import Bank has signed a EUR 15 million Factoring line of credit agreement with Banque Postale du Congo of Brazzaville. The event however took place in Cairo, Egypt.
The facility will provide liquidity to Banque Postale du Congo (BPC) for factoring supplier invoices accepted by eligible buyers, as well as for engaging in cross-border factoring.
Mrs. Kanayo Awani, the Executive Vice President, Intra-African Trade and Export Development at Afreximbank, explained that the dual-tranche factoring facility would support small and medium-sized enterprises (SMEs) in the Republic of Congo and enable BPC to expand its cross-border factoring activities.
Awani stated that the facility would significantly boost Small and Medium Enterprises financing in Congo, Brazzaville where the BPC currently remains the only institution offering factoring.
It is expected that the facility will be revolved severally over the next year, resulting in cumulative financing of up to EUR 60 million for SMEs.
It was highlighted that the transaction is part of a broader strategic partnership between Afreximbank and BPC aimed at promoting factoring in the Republic of Congo and across the Central Africa region.
The partnership is also designed to improve access to finance for SMEs, which are vital contributors to job creation and economic growth as well as strengthen capacity building and legal and regulatory framework
“Factoring has been identified as a key instrument to facilitate the implementation of Afreximbank’s current strategy, Impact 2026 – Extending Frontiers, by providing financing to SMEs that may not meet the criteria for traditional bank lending,” said Mrs. Awani.
“This facility will support SMEs and improve their competitiveness by enabling them to trade on open account terms, thereby expanding trade frontiers.”
The Chief Executive Officer of Banque Postale du Congo, Calixte Tabangoli, who signed on behalf of his organisation, said they were honoured to once again partner with Afreximbank through the expanded facility.
“Over the past two years, the Bank’s support has enabled us to provide vital working capital to more than 100 Small and Medium Enterprises in Congo. This new EUR 15 million will further strengthen our ability to promote financial inclusion and economic development.”
Tabangoli lauded the unwavering commitment of Mrs. Kanayo Awani and her team, saying her leadership continues to demonstrate that factoring is a powerful instrument for SME growth across Africa.
The facility builds on a strong and evolving partnership between Afreximbank and BPC, which began in 2018 with an initial EUR 5million facility. That support was subsequently increased to EUR 10million in 2022. Since then, BPC’s factoring volumes have grown from EUR 1.5 million in 2018 to EUR 30.5 million in 2024.
In addition to financing, the partnership has included key capacity-building and policy initiatives. Notably, Afreximbank supported the Republic of Congo’s adoption of a Model of Law on Factoring in 2021.
The Bank has also provided technical assistance, including a week-long secondment of three BPC staff members to Afreximbank in June 2024, and has collaborated with BPC in promoting awareness and developing the factoring ecosystem across the region.