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The African Export-Import Bank (Afreximbank) and supply chain financing firm Fiducia have entered into a strategic partnership through a Memorandum of Understanding (MoU) to revolutionize factoring and address the supply chain finance gap in Africa.
The MoU, signed by Kanayo Awani, Afreximbank’s Executive Vice President of Intra-African Trade Bank, and Imohimi Aig-Imoukhuede, CEO of Fiducia, aims to foster collaboration between the two entities to align their efforts in achieving their shared objectives.
Under the partnership, Afreximbank will collaborate with Fiducia to provide additional liquidity for trade facilitation through factoring on the Fiducia marketplace. The bank will also explore opportunities for collaboration with Fiducia and Access Corporation in payables financing across African markets.
The partnership is expected to bring significant benefits to small and medium-sized enterprises (SMEs). Aig-Imoukhuede highlighted the positive impact the collaboration between Fiducia and Afreximbank can have on SMEs, particularly in deepening the supply chain financing landscape in Nigeria. By providing on-lending to financiers on the Fiducia marketplace platform, funding costs can be reduced, strengthening suppliers and buyers and promoting trade facilitation. The collaboration also aims to extend similar marketplace benefits to MSMEs across the African continent.
Awani emphasized that the partnership with Fiducia aligns with Afreximbank’s ongoing efforts to promote factoring as a means to bridge the trade finance gap, particularly for SMEs. By increasing access to bank financing, the growth potential of this crucial segment of the economy can be enhanced. The involvement of emerging factors in the financing arrangement will also contribute to building factoring capacity across Africa, aligning with Afreximbank’s vision of transforming Africa’s trade.
The collaboration between Afreximbank and Fiducia signifies a significant milestone in advancing supply chain finance in Africa, addressing key challenges faced by SMEs and facilitating economic growth and development across the continent.
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