• Africa’s factoring volume rose from €21.6 billion in 2017 to €50 billion ($58.17 billion) in 2024.

• Afreximbank says the continent must scale the market to at least €240 billion—about 10% of African GDP—to support SMEs.

• Nearly 200 factoring companies now operate across Africa as businesses use the mechanism to secure immediate liquidity.

Africa’s total volume of receivables ceded to factoring companies doubled in seven years as more firms sought fast liquidity to finance operations.

Afreximbank reported that Africa’s factoring volume expanded from €21.6 billion in 2017 to €50 billion ($58.17 billion) in 2024. The bank presented the figures on Tuesday, 9 December 2025, during the annual factoring workshop held in Abidjan, Côte d’Ivoire.

Kanayo Awani, executive vice-president of Afreximbank in charge of intra-African trade and export development, said nearly 200 factoring companies are currently active on the continent. She explained that the rising volume shows that “more and more companies use this solution to convert invoices into immediate liquidity,” which enables them to fund day-to-day operations without waiting for client payments.

Despite the recent growth, Awani said the market remains far below Africa’s economic needs. She argued that the continent must reach at least €240 billion in factoring volume—around 10% of African GDP—to support structural transformation. She linked this target to the nature of Africa’s economic fabric, where over 90% of companies are SMEs.

These SMEs face long payment delays and constant difficulties recovering their invoices. Factoring could therefore become a key instrument to stabilise their cash flow, secure the operating cycle and finance expansion.

Measures Needed to Scale the Industry

Awani said several measures must be deployed to ensure factoring plays its full role. She urged banks and investors to inject more resources into the sector to deliver financing solutions tailored to business needs.

She said African countries must also establish clearer and more harmonised legislation to facilitate the transfer of invoices, secure transactions and reduce risks for financial players. She stressed the importance of training for SMEs, banks and financial institutions so they can understand how factoring works, its operational requirements and its benefits.

She concluded that governments, financial institutions and businesses must collaborate to build a strong, accessible and SME-oriented factoring market.

This article was initially published in French by Chamberline Moko

Adapted in English by Ange Jason Quenum