FCI is the world’s representative body for the Factoring and Receivables Finance Industry with more than 400 members in 90 countries.

Imohimi Aig-Imoukhuede, the chief executive officer, Fiducia, announced the onboarding of Fiducia into the global body in a statement, and described it as a major milestone for the company.

Fiducia set to Catalyse Exponential Growth in Nigeria’s Supply Chain Finance Ecosystem

“FCI is a huge network of professionals with diverse experience in factoring and receivables finance from across 90 countries. The huge leverage that membership of FCI offers includes opportunities to meet, learn, peer-review and do business with different industry stakeholders. We are excited at becoming a member of this prestigious body as it confers an advantage on Fiducia to play a key role in opening up funding opportunities for MSMEs in Nigeria and Africa to grow and scale,” he stated.

Imohimi added that as a member of FCI, Fiducia would be able to access up-to-date industry education, training, mentorship, knowledge sharing, business opportunities, industry data and market intelligence vital for Micro, Small and Medium Enterprises (MSMEs) growth in Nigeria and Africa at large.

He said sequel to the admission of the company into the body, Fiducia at the 55th Annual Meeting of IFC held recently in Marrakech, Morocco, from 29 October to 2 November 2023.

The meeting provided a leverage for Fiducia’s CEO to join other industry leaders from across the world to brainstorm and share knowledge on a wide range of topics.

“FCI has emerged over the years to become the foremost global platform for the Factoring and Receivables Finance Industry. FCI offers various solutions of cross-border receivables finance to its members by helping them to develop a framework for competitive advantage in international trade financing. Although factoring and reverse factoring model is still relatively new in Africa, the market is growing steadily. Our conviction is that Fiducia joining FCI is a step in the right direction that can further accelerate efforts at standardising and facilitating the growth of factoring in African countries,” Aig-Imoukhuede enthused.

Fiducia is leveraging technology to drive an increase in the adoption of factoring for SMEs across Nigeria & Africa.

Fiducia will drive factoring and its variants which can be considered as an alternative financing option to SMEs who are the bedrock of economic growth and job creation in Africa.

Signed by Kanayo Awani, Afreximbank’s Executive Vice President, Intra-African Trade Bank, and Imohimi Aig-Imoukhuede, Chief Executive Officer of Fiducia, the MOU aims to facilitate collaboration between the two parties to harmonize their efforts to achieve the stated objectives.

According to the MoU, Afreximbank is partnering with Fiducia in order to provide additional liquidity for trade facilitation through factoring on the Fiducia marketplace. The Bank will also explore collaboration opportunities with Fiducia and Access Corporation for payables financing across African markets.

Speaking on the partnership, Mr. Imohimi Aig-Imoukhuede, CEO, Fiducia, remarked;

“This MOU reflects the benefits for SMEs which a partnership between Fiducia and Afreximbank can drive. One such benefit is the deepening of the Nigerian Supply-Chain Financing landscape, through on-lending to Financiers (both Banks and non-Bank Factors) for use on the Fiducia marketplace platform. This will further lower funding costs on the platform and ensure strengthening and development of suppliers and buyers alike, by promoting availability of capital to facilitate trade. Similarly, the 2 partnering entities will work together to apply similar marketplace benefits to MSMEs across the African continent”.

Mrs. Awani, the Afreximbank Executive Vice President, said that the partnership with Fiducia was another step forward in Afreximbank’s ongoing developmental initiative of promoting factoring across the African continent as a means to reduce the trade finance gap which was most acutely felt by SMEs.

“SMEs contribute the majority of economic output and employment generation in Africa. Greater access to bank financing will, therefore, enhance the growth of this vital segment. The involvement of emerging factors in the financing arrangement will also build factoring capacity across the continent in furtherance of Afreximbank’s vision of Transforming Africa’s Trade,” commented

Mrs. Awani.

Fiducia is an innovative platform that connects corporate buyers, suppliers, and financiers in a digital marketplace where invoices can be financed and traded. By leveraging the credit profiles of their corporate buyers, Fiducia provides suppliers access to lowest-cost financing while preserving the liquidity of corporate buyers.

For corporate buyers and suppliers alike, Fiducia strengthens cashflow without materially impacting client on-balance sheet loan profiles. For financiers, Fiducia provides access to a greatly expanded pool of previously overlooked corporates and newly de-risked suppliers seeking financing.

At the formal launch at Eko Hotel & Suites, Victoria Island, Lagos, Chief Executive Officer of Fiducia, Imohimi Aig-Imoukhuede said that the International Finance Corporation (IFC) currently estimates the value of Nigeria’s existing supply chain financing sector at around NGN 3 trillion.

If the country’s currently excluded SME supply chains could be brought into play, an additional NGN 9 trillion could be unlocked for Nigeria’s economy.

Supply Chain Finance (SCF) is emerging as an effective instrument to reduce financing gaps in developing markets.

The current SCF supply meets only about 24% of the potential market. MSMEs are estimated to generate more than half of the SCF opportunity according to the IFC.

Commenting on the announcement, Imohimi Aig- Imoukhuede, said:

Fiducia is founded with the express purpose of levelling the playing field for business owners in Africa by unlocking the value of their supply chains. Today, Fiducia is successfully driving inclusive GDP growth by broadening financial inclusion – as a wider pool of small and mid-sized businesses enter Africa’s financial markets on the same terms and rates previously only available to large corporates. Fiducia’s financial services and funding partner ecosystem includes many of Africa’s top developmental finance institutions, equally committed to solving Africa’s supply-chain finance challenges.”

Aig-Imoukhuede disclosed that Fiducia was a game-changer for smaller businesses and mid-sized corporates, as they historically wasted resources on complex, time-consuming funding application processes that seldom delivered the desired results.

Aig-Imoukhuede assured partners and stakeholders of strictest adherence to both Nigerian and global best practices including data privacy and security supported by an effective legal framework in demonstration of commitment to trust as reflected in the company’s name.

Fiducia is the latest venture from Trium, a venture builder platform focused on digital technologies that have the potential to fundamentally improve lives. Trium sits within the Coronation ecosystem renowned for providing transformational solutions to Africa’s unique challenges.