Conference from Woodhall Capital targets Africa’s $81 bn trade-finance shortfall by scaling factoring, legal reform, and tech to empower SMEs across the continent.
The High Cost of Payment Delays
Africa’s small and medium-sized enterprises (SMEs)—which contribute nearly 40 percent of the continent’s GDP—face a critical challenge: delayed payments. In some cases, businesses wait upwards of 70 days to receive funds, creating cash-flow strains that hamper expansion, innovation, and survival. This inefficiency is a major contributor to the estimated $81 billion trade-finance gap recently discussed at the two-day Regional Conference on Factoring, Receivables Finance, and Credit Insurance in Africa hosted by advisory firm Woodhall Capital.
Factoring: A Key to Unlocking Liquidity
The conference spotlighted factoring—where businesses sell invoices to financiers for immediate funds—as a vital solution to cash-flow woes. Despite representing less than 2 percent of the global €2.7 trillion factoring market, leaders have set an ambitious goal: raising its share to €100 billion by 2030. At the conference, Woodhall Capital demonstrated its fast-turnaround liquidity model (24–48 hours), which has already facilitated more than $6 billion in structured deals, highlighting how effective receivables financing can be in fueling trade.
Policy, Regulation, and Digital Infrastructure
A key outcome of the conference was a consensus on reforming legal frameworks to support factoring growth. Delegates advocated for Nigeria’s Draft Factoring Bill (link) and harmonization of receivables finance laws under the African Continental Free Trade Area (AfCFTA). Equally critical is the technological overhaul of payments infrastructure: the adoption of blockchain, real-time transaction platforms, and digital receivables registries can streamline access while reducing the cost of finance.
Woodhall Capital and the Creative Bank
Woodhall Capital also unveiled plans for a Creative Bank—a $1 billion fund aimed at supporting Africa’s creative industries by 2026. Mojisola Hunponu‑Wusu, Woodhall’s president, said of the event, “This conference is a launch pad, not a conclusion. By bridging legal gaps, scaling digital infrastructure, and fostering pan-African collaboration, we’re building a future where SMEs and economies thrive in a unified, self-reliant market.”
A Roadmap to Financial Inclusion and Economic Growth
By combining receivables financing with legal reform and digital innovation, Africa can significantly reduce its SME finance constraints. This integrated approach not only closes the $81 billion trade-finance gap but also expands access to funds for the creative sector, boosts intra-continental trade, and strengthens regional economic integration. The conference stands as a call to action: now is the moment for governments, investors, and innovators to invest in the backend—the systems, laws, and platforms—that empower businesses continent-wide.
For more news of business and trade, visit our dedicated archives.