Afreximbank and Banque Postale du Congo Sign €15M Deal to Boost SME Factoring in Congo

In a significant move aimed at strengthening small and medium-sized enterprise (SME) financing and regional trade in Central Africa, the African Export-Import Bank (Afreximbank) has signed a landmark €15 million factoring line of credit agreement with Banque Postale du Congo (BPC). The signing ceremony took place in Cairo and marks another milestone in the growing partnership between the two institutions.

The newly signed dual-tranche facility is designed to enhance BPC’s ability to finance supplier invoices through factoring—a financial transaction where a business sells its receivables to a third party at a discount. This facility not only offers liquidity for domestic factoring operations but also provides BPC with the financial capacity to undertake cross-border factoring within the African continent.

Strategic Support for SME Growth

Speaking during the signing event, Mrs. Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, emphasized the strategic nature of the facility. She described it as a crucial component of Afreximbank’s broader Impact 2026 strategy, which aims to expand the frontiers of African trade. According to Mrs. Awani, factoring is a key enabler for unlocking trade financing for SMEs that often lack access to traditional forms of credit.

“This facility will significantly boost SME financing in the Republic of Congo, where BPC remains the sole provider of factoring services,” said Mrs. Awani. “By allowing SMEs to trade on open account terms, we are expanding their ability to participate in regional and international trade, improving their competitiveness, and fostering sustainable economic development.”

She noted that the facility is expected to be revolved multiple times over the next 12 months, potentially reaching a cumulative funding volume of €60 million for SMEs in Congo.

Strengthening a Longstanding Partnership

Mr. Calixte Tabangoli, Chief Executive Officer of BPC, expressed appreciation for Afreximbank’s continued support, highlighting how previous facilities had enabled BPC to assist over 100 SMEs across the Republic of Congo. The collaboration began in 2018 with an initial €5 million facility, which was doubled to €10 million in 2022. Over the years, BPC’s factoring operations have experienced exponential growth, increasing from €1.5 million in 2018 to €30.5 million in 2024.

“We are honoured to once again partner with Afreximbank through this expanded facility,” said Mr. Tabangoli. “This new €15 million line will deepen our commitment to financial inclusion and further contribute to Congo’s economic development. Factoring has proven to be a powerful tool for SME growth, and we are committed to further nurturing its adoption.”

Broader Impact and Policy Influence

Beyond financing, the partnership between Afreximbank and BPC has included robust policy advocacy and capacity-building initiatives. A landmark achievement was the adoption of a Model Law on Factoring by the Republic of Congo in 2021, backed by Afreximbank’s technical and advisory support. This legal framework provides greater regulatory certainty and enhances investor confidence in factoring operations.

To further build institutional capacity, three BPC staff members were seconded to Afreximbank for a week-long technical immersion in June 2024. This training is part of Afreximbank’s broader strategy to foster knowledge exchange and develop domestic expertise in trade finance.

Moreover, both institutions have collaborated on various outreach initiatives to promote factoring awareness among SMEs, regulators, and other financial institutions in the Central Africa region. These efforts are gradually cultivating a more inclusive and dynamic trade finance ecosystem across the continent.

Driving Africa’s Financial Transformation

This facility aligns with Afreximbank’s ongoing mission to unlock Africa’s trade potential through innovative financial instruments. Factoring, in particular, is increasingly being recognized as a solution for bridging the financing gap for SMEs, which are often underserved by conventional banks due to stringent lending criteria.

By providing working capital through receivables financing, SMEs can maintain cash flow stability, invest in growth, and expand their market reach. The new facility with BPC is expected to serve as a model for similar partnerships across Africa, thereby strengthening intra-African trade and economic integration under the African Continental Free Trade Area (AfCFTA).

As Afreximbank and BPC continue to deepen their collaboration, the impact is likely to ripple across sectors—fostering entrepreneurship, generating employment, and accelerating sustainable development in the Republic of Congo and beyond.