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flag Afreximbank urges African nations to boost factoring to €240B to close SME financing gap and boost trade.

flag Afreximbank is urging African nations to expand factoring and supply chain finance to at least €240 billion to support SMEs, which drive over 90% of businesses and contribute significantly to employment and GDP. flag Despite factoring volumes more than doubling since 2017—from €21.6 billion to €50 billion in 2024—and nearly 200 firms now operating across the continent, current levels remain far below potential. flag The bank stresses that scaling factoring can help close Africa’s $300 billion annual SME financing gap, improve cash flow, and strengthen intra-African trade. flag Efforts include policy reforms, legal framework improvements, training programs, and collaboration through initiatives like the African Continental Free Trade Area and the Pan-African Payment and Settlement System.

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