Afreximbank extends €15m factoring facility to Banque Postale du Congo

The African Export-Import Bank (Afreximbank) has signed a €15 million factoring line of credit agreement with Banque Postale du Congo (BPC), strengthening a long-standing partnership aimed at expanding access to finance for small and medium-sized enterprises (SMEs) in the Republic of Congo. The agreement was formalised at a ceremony in Cairo, further reinforcing both institutions’ shared commitment to promoting trade and economic development in Central Africa.

The new dual-tranche facility will provide much-needed liquidity to BPC, enabling it to finance supplier invoices accepted by eligible buyers and support cross-border factoring operations. This initiative is particularly vital in Congo, where BPC remains the sole institution offering factoring services, and where SME access to working capital is often limited by traditional lending criteria.

Mrs. Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, hailed the facility as a strategic tool in the Bank’s broader development agenda. “This facility will support SMEs and improve their competitiveness by enabling them to trade on open account terms, thereby expanding trade frontiers,” she said. She also emphasized that factoring plays a crucial role in implementing Afreximbank’s strategic plan, Impact 2026 – Extending Frontiers, by empowering businesses that are typically underserved by conventional finance channels.

This latest €15 million credit line builds on a progressive partnership between Afreximbank and BPC that began in 2018 with an initial €5 million facility. The line was increased to €10 million in 2022, with factoring volumes rising from just €1.5 million in 2018 to €30.5 million in 2024. The current facility is expected to be revolved multiple times over the next 12 months, potentially delivering cumulative financing of up to €60 million to Congolese SMEs.

Mr. Calixte Tabangoli, Chief Executive Officer of BPC, expressed appreciation for the continued support from Afreximbank. “This new EUR 15 million facility will further strengthen our ability to promote financial inclusion and economic development,” he said. “Over the past two years, the Bank’s support has enabled us to provide vital working capital to more than 100 SMEs in Congo.”

Beyond direct financing, the Afreximbank-BPC partnership has facilitated significant capacity-building and legal reform efforts in the Republic of Congo. In 2021, with Afreximbank’s support, the country adopted a Model Law on Factoring, enhancing the legal framework for trade finance. The Bank has also provided technical assistance to BPC, including the secondment of staff to Afreximbank for hands-on training and joint efforts to grow the regional factoring ecosystem.