(1) Financial Intervention
We assist African Financial Institutions in the commencement of Factoring business through providing Lines of Credit or Credit Cover to Factoring companies or banks involved in Factoring activities.
(2) Legal and Regulatory Frameworks
The Bank is working at improving weak legal environment compounded by the high cost of perfecting legal documents. The Bank has therefore introduced a Factoring Model Law in Africa in 2016, and will continue to organize Workshops, Trainings and Advocacy Campaigns targeted at Law Makers & Regulators to educate and encourage interest in Factoring towards facilitative legal and regulatory environments in the respective countries.
(3) Awareness and Capacity Building
To deal with the lack or very limited knowledge of the product across the continent:
The Bank has been facilitating the sharing of experiences between local members in Africa and engaging in public relations activities designed to raise local awareness of the benefits of Factoring.
The Bank has also been implementing educational activities to develop skills in Factoring and build capacities across the continent.
To alleviate the cost of setting up Factoring business platforms and challenges around the lack of expertise in back-office and receivables management, the Bank is facilitating the creation of back office systems.
(5) Strategic Partnerships
In line with its mandate, the Bank has over the years built and nurtured constructive partnerships with national, regional and international partners depending on their areas of core competency. This includes partners such as the FCI, Africa-Re and Rating Agencies, the Africa Capacity Building Foundation (ACBF) to benefit from its technical competency in the area of knowledge generation and sharing across Africa, African Development Bank (AfDB) through the Fund for Private Sector Assistance (FAPA) to support new Factoring companies, others Development Financial Institutions and commercial banks for the provision of cheap funding.