| Bamako (Mali), Feb. 27, 2023 – The African Export-Import Bank (Afreximbank) says it is celebrating the adoption and enactment of a factoring law in the Republic of Mali. Afreximbank’s Factoring Model Law was used as a guide for the development of La Banque des États de l’Afrique de l’Ouest (BCEAO’s) factoring law, which the Republic of Mali has adopted. The bank said this conformed to the Bank’s factoring strategy which aimed to provide legal and regulatory support to African countries in their pursuit of factoring as an alternative financing option. “The enactment of the law in Mali creates a facilitative legal and regulatory environment for factoring to thrive in the country, thereby supporting SMEs with access to another form of financing. “The move, which follows similar legislative developments in Togo, Niger and Burkina Faso, constitutes a crucial milestone in the broader African effort to increase its share of global factoring transactions from its current level of around 1%. “Moreover, Mali’s decision may well encourage other BCEAO’s member states to adopt and domesticate the law. “Factoring offers an alternative trade finance instrument to African businesses, and therefore having a robust legal regime that promotes factoring will provide a major boost to the emergence and growth of SMEs and factoring companies in the Republic of Mali and beyond. “By creating a legal infrastructure which diversifies SME financing, and provides credibility and assurance to investors, the law will significantly improve access to finance for previously excluded small and medium sized businesses in Mali,’’ the bank said. Afreximbank’s Factoring Working Group, led by Ms. Kanayo Awani, Executive Vice-President, Intra-African Trade Bank, played a pivotal role in the development of the law. Commenting on the development, Awani said: “Today’s news represents yet another momentous advancement for Africa’s thriving SME sector, and broadens the availability of finance to those with dynamism and entrepreneurship to start and expand businesses in the Republic of Mali. ”We are delighted that the Malian government is championing innovative forms of financing – and we are proud of our role in accelerating and facilitating this process,” she said. (GBN) |
Afreximbank celebrates adoption of factoring law in Mali
