Annual Review 2024

FCI’s 2024 Annual Meeting takes place in Seoul, South Korea.

The cover shows a night view of Jamsil Railway Bridge crossing
the Han River and Lotte World Tower in Seoul.
(Photo: © Richard Sharrocks / Moment via Getty Images)

FCI is the Global Representative Body for Factoring and

Financing of Open Account Domestic and International
Trade Receivables. With close to 400 member companies in
approximately 90 countries FCI offers a unique network for
cooperation in cross-border factoring.

FCI is building bridges:

– To global business opportunities
– To new markets
– To new partnerships
– To innovative products and services
– To know-how and leading expertise
Annual Review 2024

Content

Welcome | A New Chapter for FCI 2

Çagatay Baydar, FCI Chairman

Introduction | FCI Evolves with the Trade Finance Industry 4

Neal Harm, FCI Secretary General

FCI Vision Statement & Mission Statement 7

Roundtable Discussion | The Interconnection and Future of 8

the recent Three Legal Factoring Initiatives
Richard Stehl, Marek Dubovec, S.J.D., William Brydie-Watson, Esq.,
Enga Kameni, Ph.D

Regional Updates
● 2023 Figures 12
● Legal, Regulatory and Advocacy 13
● Promotion and Awareness 15
● Membership Mobilisation 16
● Challenges 17
● Outlook 2024 19
– Africa | Nassourou Aminou
– Americas | Alberto Wyderka
– North East Asia | Lin Hui
– South and South East Asia | Thompson Lui
– CEE, SEE and the Middle East | Betül Kurtulus
– European Union | Fausto Galmarini

FCI Academy | Building a Resilient Trade Environment: 20

The Role of Education in Fraud Detection in International Factoring
Aysen Çetintas

GIAR | 2023 Global Industry Activity Report 22

Ciprian Radu

FCI Expressed in Figures 27

Ciprian Radu

Factoring Turnover by Country/Territory in 2023 29

Total Factoring Volume by Country/Territory in the Last 7 Years 31

Welcome A New Chapter for FCI

I wish to express my sense of pride in FCI’s extraordinary Çagatay Baydar,

efforts and accomplishments over the past year. Reflecting FCI Chairman
on our journey, we have navigated significant changes and
challenges while making remarkable strides forward. From
hosting several events in collaboration with our esteemed
partners to engaging in meaningful discussions with our
members, we have explored new ways to expand our reach
and impact within our Industry and across the globe. Our
dedicated team's collective embrace of change particularly
reassures me. Their resilience and enthusiasm propelled us
forward into this exciting new chapter for FCI.

In September 2023, the FCI Academy introduced Specialised Secretary General Transition Period
Courses to our On-Demand Programme, enabling prospective
learners to start studying immediately, eliminating the need The leadership transition within FCI marks a pivotal moment
to wait for course start dates. We are proud to announce that in our organisation’s journey. With a new Secretary General
we are educating thousands of students every year, providing taking the lead, we embark on a new chapter filled with
accessible and flexible learning opportunities to a diverse exciting opportunities and renewed goals. Since assuming
range of individuals. As Chairman, I emphasise that education the role in March 2024, Neal has wasted no time making his
stands at the core of our mission, recognising its paramount mark. Building upon the foundation laid by Peter, Neal has
importance in guiding our endeavours and shaping the future of swiftly implemented strategies to ensure a tangible return on
our Industry. investment for our members. By emphasising the value of FCI
membership, he is dedicated to ensuring that every interaction
The 55th Annual Meeting held in Marrakech in October with FCI delivers significant value to our members. Under
2023 was a great success, drawing over 200 attendees, Neal’s guidance, we are poised to propel FCI further into the
including senior industry professionals. The event featured a modern era, solidifying our position as an industry leader with a
comprehensive programme with contributions from more than global impact.
50 industry-leading experts, who shared invaluable insights on
the latest trends, challenges, and developments in the Global The Importance of Cooperation with
Factoring and Receivables Finance Industry. Additionally, it Regional Development Banks
provided a platform for delegates to engage with our incoming
Secretary General, Neal Harm, ensuring a seamless transition FCI strategically partners with Development Banks such as
and fostering collaboration for the future. the European Bank for Reconstruction and Development

The Margaret McDermott Bridge and the Margaret Hunt Hill Bridge, Trinity River, Dallas, Texas, USA.

2 FCI Annual Review 2024

Welcome | A New Chapter for FCI

(EBRD), the African Export-Import Bank (Afreximbank), the the industry to new heights. Recently, we have taken steps
Asian Development Bank (ADB), the International Finance to improve our SCF strategy. Neal joins FCI with significant
Corporation (IFC) of the World Bank Group, the Islamic experience in SCF with domestic and multinational banks,
Trade Finance Corporation (ITFC), and the Inter-American and we are optimistic that he will create a compelling and
Development Bank (IDB). Our partnerships are focused sustainable SCF strategy that meets our members’ needs. Our
on providing targeted support to financial institutions, commitment to providing our members with the best support
governments, and central banks worldwide. We work towards and services in SCF remains unchanged.
promoting and educating people on factoring and supply chain
finance. Our collaborations bring together industry leaders, Most recently, FCI played a supporting role in addressing the
banks, financial institutions, legal professionals, factoring challenges of the EU Late Payments Regulation (LPR). The
companies, and governments to cover a wide range of topics. EUF shared suggestions and opinions on the Commission’s
The ultimate goal of these partnerships is to advance financial proposal to regulate late payments in commercial transactions.
inclusion in the countries we serve. I am grateful to these They highlighted six key areas for improvement, including the
institutions, which we consider our business partners, for their need to retain or amend the Late Payments Directive. During
contributions to our Industry. Explore our upcoming events by the joint FCI-EUF 9th European Factoring Summit, Antonella
visiting our website and registering to see the significant impact Correra, European Commission Senior Policy Officer, shared a
our events have on knowledge, understanding, and expanding presentation on the EU Commission Proposal for Late Payment
networks for our attendees. Regulation, highlighting the rationale and expectations.
Correra explained that the three pillars of the LPD Revision
Reorganisation of FCI include Clarity & Transparency, Enforcement, and Redress.
On 23 April 2024, the EU Parliament (EP) adopted its position
FCI has recently undergone a reorganisation and welcomed on the Late Payment Regulation (LPR) in plenary. The EP
new Technical Committee Chairs and Members. The new Chairs supported the idea that the payment term is fixed to 30 days
are all highly motivated and eager to develop more projects for B2G, up to 60 days for B2B, and up to 120 days for certain
with their respective committees. Technical Committees goods, such as slow-moving goods. The consolidated document
are crucial in advising FCI on projects contributing to the regarding the LPR and all the amendments adopted was
association’s evolution. The four new Chairs, Mary Farley published on 24 April 2024. We eagerly await the outcome and
(Compliance), Monica Fernandez Barbero (Supply Chain look forward to further developments in the Council.
Finance), Philippe Gresta (Education), and Richard Stehl (Legal),
have been nominated and are already working alongside the At the 55th Annual Meeting, three initiatives were launched
current Chairs, Sevil Dinçer (Business & IT Solutions) and to revolutionise the factoring industry globally: the Factoring
Chung Huei (Sarah) PON (Marketing & Communication). Model Law by UNIDROIT, the IFC/World Bank’s Factoring
We congratulate them and look forward to working with them. Regulatory Guide, and the FCI Legal Study. These initiatives
aim to boost the growth of factoring and receivables finance.
Additionally, FCI has introduced a few new Ambassadors for A meeting with stakeholders will be held to discuss introducing
each region, representing the association and its values. FCI has these initiatives in markets that require legal and regulatory
established a new regional committee structure that considers reforms, which will help expand factoring and receivables
the rapidly changing landscape of the trade finance industry, finance worldwide. In the roundtable discussion within this
and is designed to address the diverse needs of our members publication, Richard Stehl (FCI Legal Committee Chairman)
and adapt to evolving market dynamics. The first regional discusses and shares more details on this subject with William
committee has been established in the UAE as the Regional Brydie-Watson (UNIDROIT), Marek Dubovec (International Law
Committee for MENA. The committee upholds financial Institute) and Enga Kameni (African Export-Import Bank).
stability, prevents financial crime, and ensures regulatory
compliance and ethical conduct within the region. The last 12 months have been nothing short of transformative
for our Industry and FCI members. With numerous changes
2024 and Beyond and initiatives underway, we have much to look forward to at
our upcoming Annual Meeting. Our programme is designed to
FCI launched our SCF initiatives in 2019, with the launch of help you easily navigate the future of Trade Finance, featuring
FCIreverse, FCIreverse consulting services, FCI SCF & Reverse industry-leading pioneers presenting and discussing crucial
Factoring E-learning course and the inclusion of SCF/Reverse topics that will shape our Industry. With over 26 hours of
Factoring in articles, events, and our website, for thought networking opportunities, you’ll have plenty of time to connect
leadership. FCI is also a founding member of the Global with colleagues and expand your professional circle. Don’t miss
Supply Chain Finance Forum (GSCFF), together with the ICC, out on our Annual Meeting or future events. I can’t wait to see
BAFT, ITFA, and the EBA, we are able to help steer and guide you there.

FCI Annual Review 2024 3

Introduction FCI Evolves with the Trade Finance
Industry

Founded in 1968, FCI is the global representative body for the Neal Harm,
factoring, receivables and supply chain finance industry, FCI Secretary General
a global non-profit association based in the Netherlands, with
almost 400 Members in over 90 countries. The past few years
have brought their challenges, from the pandemic to supply
chain issues to geopolitical stresses in various parts of the
world. Although the pandemic has finally subsided at a global
level, many challenges continue at a regional level, including
interest rates and inflation that continue to impact specific
markets. FCI dealt with several of its challenges in 2023,
including the impact of Morocco’s major earthquake just prior
to the Annual Meeting in Marrakech. On top of these external
issues and events, FCI underwent a significant change in
the 4th quarter, with the election of a new Chairman and
Executive Committee and the passing of the torch from one
Secretary General to another. Despite these challenges,
FCI continued to support its members during a period of
growth in global factoring volume.

On a personal level, I am honoured to take on the role of teams. Joining FCI in this new role gives me the opportunity
Secretary General. I have been a practitioner in the industry of to work with global members and associations to advance the
working capital finance with a focus on International for over role of FCI in every market. I took on this challenge because
30 years. I have been very active within FCI over most of those FCI has excellent growth opportunities and I look forward to
years, joining several working groups, being elected to the deepening and expanding FCI’s market. My focus within FCI is
Executive Committee, and receiving FCI awards with various ensuring that everyone on the team is focused on our Member’s
Return on Investment. For our members, I want to make sure
that every member is capitalising on FCI’s advocacy, education,
Global Factoring Volume Evolution 2003-2023 in billions of EUR global network of trade, and working capital institutions.

As I have taken the role of Secretary General, I see the

challenges that we face as an institution with 56 years under
4,000 our belt, but more importantly, the opportunities that are being
presented to FCI, like India developing the Gujarat International
3,500 Finance Tec-City (GIFT City), Africa rolling out the Model Law
on Factoring, Asia developing various supply chain finance
3,000 platforms, development banks coming to FCI to grow emerging
markets with them, and FCI through EU Federation (EUF)
2,500 taking a lead on addressing the Late Payment Regulations in
4%
8.

Europe. Each market has a different need, and FCI is equipped

=
RG

2,000 with the talent and resources to support those needs for its
CA
ar

Members. It is important for FCI to leverage and expand its

ye
20

1,500 network to continue supporting and developing business for

its members. This focus, and several new initiatives will be
1,000 touched on in this report.

500 The Global Factoring Market

0 As was predicted in last year’s report, 2023 volumes slowed

2003 2008 2013 2018 2023 from the prior two years. However, the world factoring
statistics indicate that the 2023 volumes in factoring and
● International ● Domestic receivables finance witnessed a continued growth trajectory,

4 FCI Annual Review 2024

Introduction | FCI Evolves with the Trade Finance Industry

Evolution of FCI Membership 1998-2023 growth in the Membership. For this reason, the Executive
Committee is embarking on a strategic review of the needs of
FCI Members that will be concluded later in 2024.
450
400 2023 Initiatives
350
300 Impact of Digitalisation and Technology
250 Technology took centre stage within FCI over the past two
200 years, which resulted in one of the biggest projects in FCI’s
150 history, an investment of nearly EUR 1 Million to build the new
100 edifactoring 2.0 platform. Since its launch in April 2022, FCI
50 has been making steady improvements to it, and the users’
0 feedback has been positive. FCI also invested significantly in its
1998 2003 2008 2013 2018 2023 internal accounting and treasury functions by implementing
an internally controlled bookkeeping system, bringing all
● Middle East / Africa ● North America the bookkeeping activities in-house for the first time and
● East Asia ● Eastern Europe implementing a new invoice approval system called ’Zenvoice’,
● South Asia ● Western Europe which will ensure that all invoices are approved within the
● South / Central America Secretariat in an automated fashion to include the responsible
party overseeing the expense, ensuring four eyes principle. This
process will allow FCI to have better control between the bank
accounts, credit card activities, and other systems that will
increasing by +3.6%, which comes off the heels of two all be seamlessly and automatically directed to the proper GL
consecutive solid growth years in 2021-2022. Compared with accounts in the new accounting system.
the previous year’s EUR 3,659 billion, the 2023 estimated
volume of EUR 3,791 billion represents the industry’s third The global tech advancements have changed FCI’s Membership
straight year of growth, albeit a slowdown compared to composition over the years. FinTechs and other technology
the tremendous post-pandemic bump. In fact, 2023 can firms have become a big part of FCI’s ecosystem. The
be considered a more traditional year, as we swing back to technology firms include fraud/risk prevention, digitisation,
normalised single digit increases. collateral registries, and alternative finance solutions. Financial
Institutional Members are embracing the technology and
Membership thought leadership these Sponsor and Partner Members
bring to FCI. Events have become more engaging across the
FCI has evolved as an association, increasing from more than Membership with these firms, along with related whitepaper
100 members 20 years ago to almost 400 today. Back then, and joint interviews with trade-related publications.
over 45% of our membership was based in Western Europe and
almost exclusively limited to traditional two-factor Members; FCI also witnessed an increased interest in developing
however, that figure stands at 17% today. At the time, the Asia receivables marketplaces wanting to join FCI, as more
Pacific region accounted for only 5% of membership, but today, companies are engaged in providing debt capital to the
it is 24%. FCI added 31 new memberships in 2023 - below the industry. Small and midsize businesses (SMEs) gain access
2019 peak where 45 new members were onboarded; the growth to working capital by presenting invoices to a global network
in new memberships has improved after suffering the lingering of institutional buyers who buy receivables via a real-time
impact of the global pandemic. Regarding member retention marketplace. The concept was an alternative to traditional
in 2023, FCI had 26 terminations reported for the year, factoring as we know it today. The technology has improved to
compared to 14 in 2022. The composition of new members in such an extent that a number of new players are now emerging,
2023 continued from affiliate members, with over 70% joining especially in India and Singapore, and FCI is helping to lead the
FCI from emerging markets. This trend has been occurring, way.
especially in the past decade.
African Development Bank (AfDB) Grant
Along with the evolution is the continued growth in Affiliate, FCI continues to support the deployment of the special purpose
Sponsor, and Partner Members. Organisations and Financial grant authorised by the African Development Bank (AfDB) to
Institutions see the value or the Return on Investment as being deploy capacity building in the emergence of factoring in Africa,
associated with FCI. FCI is a thought leader in open account ultimately benefiting SMEs across the continent and buyers
trade receivable finance, which is evident in the continued across the globe. The project was to help upgrade and provide

FCI Annual Review 2024 5

Introduction | FCI Evolves with the Trade Finance Industry

consultancy services for the capacity building of emerging and instrument for States that want to introduce a new factoring
established factoring firms in Africa, developing sustainable law or update their existing laws. The Model Law was first
knowledge, and building a new learning platform in Africa. initiated in 2019 by World Bank representatives who recognised
the importance of a standalone Model Law on Factoring,
The grant includes advising start-ups in the factoring space. especially for those emerging markets who are considering
It also provides advisory and mentoring services. In the past introducing factoring in their countries. The Factoring Model
year, it helped support the organisation of conferences and Law Working Group is working towards a pragmatic yet flexible
workshops across Nigeria, Senegal, and Morocco to train approach to capture the intricacies of factoring transactions
and sensitise future factoring users, commercial banks, and while maintaining legal accuracy in the drafting process to
government officials. It provided needed scholarships to various cover a variety of open account arrangements, such as factoring
members and stakeholders in Africa, allowing them to enrol in with or without recourse, reverse factoring, non-notifiable
the FCI Academy’s online courses. It also included funding for factoring, etc. It is emphasised that providing such legal
entrance into the FCI-Afreximbank ’Certificate of Trade Finance clarities to a comprehensive spectrum of factoring transactions
in Africa’ (COTFIA) programme, a one-year highly specialised would boost investor confidence and thus promote easier and
hybrid education experience orchestrated by the Afreximbank greater access to credit.
and partly led by the American University in Cairo. In addition,
through the grant, Afreximbank and FCI organised a major Islamic International Factoring
event on factoring under the AfCFTA at the Inter-African Trade FCI’s recent strides in Islamic international factoring
Fair in Cairo, Egypt in November. The grant went live on the 1st marks a milestone in the realm of global finance. Through
of February 2021 and ended on the 31st of December 2023. a collaborative effort with key stakeholders, including the
International Islamic Trade Finance Corporation (ITFC), FCI has
Supply Chain Finance and the FCIreverse Project developed a comprehensive set of rules tailored specifically for
FCI has made investments in the FCIreverse platform to Islamic factoring. By signing a Memorandum of Understanding
support supply chain finance with its initial launch in 2019, but (MOU) with ITFC and convening a virtual meeting of the Islamic
of course, it was stymied from the pandemic. Over the past 5 Factoring Chapter, FCI aims to attract more Islamic Banks
years, the product has evolved globally with more and more and NBFIs, fostering broader membership and catalysing
financial institutions and technology companies getting more substantial growth in Islamic factoring worldwide.
involved, which has led FCI to reorganise the SCF committee
and refocus its efforts on the core of FCI’s traditional 4-corner This initiative not only promotes Shariah-compliant financial
model. In this model, which leverages the two-factor system, markets and instruments but also underscores the importance
the export factors around the world can support the anchor of adapting regulatory frameworks to accommodate Islamic
buyer’s FI, by educating the supplier on the many benefits finance principles, thus bolstering cross-border operations and
reverse factoring offers, signing a local factoring contract with enhancing the resilience of the international finance system.
the supplier, providing Know Your Customer (KYC)/Anti-Money Onboarding more Islamic Finance Institutions (IFIs) into the
Laundering (AML) guidance, and potentially funding against FCI network will contribute significantly to developing Shariah-
assigned receivables. compliant financial markets and monetary instruments,
fostering innovation and stability while facilitating seamless
The Evolution of Receivables Registries cross-border operations.
FCI also witnessed an increased interest in the development of
receivables registries. However, there is a hesitation in some Furthermore, with enhanced communication facilitated by FCI,
markets due to the risk of financial institutions perfecting the turnover of Islamic international factoring is expected to
their rights to the invoice as an asset. The focus and push experience notable increases in the years to come, reflecting
within the private sector have caught the attention of several the growing significance of this sector in the global economy.
central banks and regulatory agencies. The ability for financial FCI has witnessed several Islamic factoring transactions the
institutions to publicly register their debt or ownership against last year.
a company’s trade receivable as an asset is a critical step for a
market to provide security around the trade receivable. Conclusion

Advocacy FCI underwent significant leadership change in 2023 and

FCI has worked diligently on launching three significant entering 2024, both in the Secretariat and the Executive
initiatives, each announced during the 55th Annual Meeting in Committee. Everyone across FCI has embraced these changes,
October 2023, namely the UNIDROIT Model Law on Factoring, showing the resilience of the infrastructure and membership.
IFC/World Bank’s Factoring Regulatory Guide, and the FCI FCI is evolving along with the trade finance industry, helping
Legal Study. The purpose of the Model Law is to provide an close the existing trade finance gap.

6 FCI Annual Review 2024

FCI Vision Statement & Mission Statement

FCI Vision Statement

FCI’s Vision is to be the Global Association for the Open Account Receivables Finance
Industry.

FCI Mission Statement

Receivables Finance is the core focus of the association and includes Factoring,
Invoice Discounting and other Supply Chain Finance solutions.

FCI is the Global Voice for Open Account Receivables Finance:

– FCI facilitates and promotes International Factoring through a Correspondent
Factoring platform.
– FCI actively supports the growth of the Industry and works jointly with policy
makers and stakeholders worldwide.
– FCI promotes best Industry practices through education.
– FCI publishes Information & Statistics about the Industry.
– FCI endorses financial stability, the prevention of financial crime and respect for
regulatory compliance and conduct.

Night view of Seoul, South Korea.

FCI Annual Review 2024 7

Roundtable Discussion The Interconnection and Future of the
recent Three Legal Factoring Initiatives

Critical to the global acceptance and expansion of factoring Richard Stehl,

and the financing of open account trade receivables is an Chairman of the FCI
in-depth understanding by market participants of the legal Legal Committee
and regulatory framework in each country where such
transactions are sought to be conducted. With this in mind,
FCI announced the results of its Legal Study at FCI’s 55th
Annual Meeting in Marrakech on 30 October 2023. The
Legal Study was built upon a comparative legal study for the
factoring and commercial finance industry, conducted in 2013
by the European Federation for the Factoring and Commercial
Finance Industry (EUF), covering 27 European Union countries
and six benchmark markets. Guided by Mr. Yuce UYANIK,
a member of the FCI Legal Committee, FCI issued detailed RS: Recently, in 2023, we witnessed the introduction of three
legal questionnaires to FCI members in an additional sixty powerful initiatives for receivables finance: FCI’s Legal Study,
(60) countries outside of the European Union, with responses UNIDROIT’s Factoring Model Law and IFC’s Knowledge Guide
from fifty-eight (58) countries received and analysed. The on Factoring Regulation and Supervision. What are your
combined Legal Study covers ninety-one (91) countries– the thoughts on the synergistic impact of these three initiatives
most extensive and comprehensive legal study of factoring on the factoring and receivables finance industry?
and trade receivables finance. Useful topics surveyed include
Local Regulations, Electronic Communications, Prohibition MD: Over the last two decades, law reforms changing private
Against Assignments, Disputes, Force Majeure, and many law rules have not delivered the desired economic benefits,
other important legal issues which vary from country to including increased receivables finance activity. Regulatory
country. The Legal Study results are presented in summary and practical challenges must be addressed at the same time.
fashion, with the quantitative answers presented in pie chart Each of the three documents addresses a specific aspect of an
representations reflecting percentage responses from all ecosystem conducive to receivables financing transactions.
countries, supported by insightful charts detailing responses International financial institutions that support reforms should
to survey questions from each participating country. The make all three papers part of the reform projects.
appendix to the study contains reproductions of the actual
questionnaire responses from each country for users who WB-W: The FCI Legal Study, UNIDROIT Model Law on
wish to obtain specific information from a particular country. Factoring, and IFC Factoring Regulation Knowledge Guide
are well positioned to have a solid complementary impact on
global factoring practice. As a starting point, the UNIDROIT
Richard Stehl (RS), Chairman of the FCI Legal Committee, Model Law on Factoring provides an international standard for
discussed the FCI Legal Study with the following prominent countries looking to improve their legal framework to facilitate
factoring experts (from left to right): factoring and receivables finance. The IFC Knowledge Guide
● Marek Dubovec, S.J.D. (MD), Director of Law Reform provides corresponding guidance on regulation, supervision
Programs, International Law Institute and licensing. These two instruments are designed to work
● William Brydie-Watson, Esq. (WB-W), Senior Legal Officer, together - Annex I of the IFC Knowledge Guide even contains
UNIDROIT a factoring law template structure that incorporates the
● Enga Kameni, Ph.D (EK), Senior Manager (Legal Services), elements of the UNIDROIT Model Law on Factoring and the
African Export-Import Bank IFC Knowledge Guide.

8 FCI Annual Review 2024

Roundtable Discussion | The Interconnection and Future of the recent Three Legal Factoring Initiatives

The FCI Legal Study then provides a comprehensive and WB-W: The transition to fully electronic factoring practices
detailed comparative study on the current state of factoring continues apace across the world. However, this transition
law and regulation in 91 countries. This valuable data will has not been smooth in all countries, especially in legal
allow the factoring industry to assess how domestic legal and regimes where it is unclear whether electronic documents
regulatory regimes compare to international standards and are legally equivalent to paper documents. The UNIDROIT
identify those areas where legal and regulatory reform are Model Law on Factoring is technology-neutral. It does not
most needed to strengthen factoring practices and increase provide any particular standards on how transfer notices of
global factoring volumes. payment instructions must be made, allowing for electronic
communications, invoicing and signatures (to the extent the
EK: 2023 marked an important turning point in the global implementing country’s general law permits them). Further,
factoring industry, especially from a legal perspective. the Model Law does require enacting countries to establish
The UNIDROIT Factoring law harmonises international an electronic registry for the registration of notices regarding
best practices into one document. The deliberations were the transfer of receivables. It does not contemplate countries
transparent and inclusive and gave a sense of ownership to establishing a paper-based registry.
industry players rather than to bureaucrats. The Legal Study
also provided valuable insights into critical legal issues to It should also be noted that UNCITRAL has adopted several
be considered in factoring transactions. The overarching international standards designed to facilitate the use of
conclusion is that legal and regulatory issues play a communications technology to create new opportunities
fundamental role in the continuous growth and development for trade, including the UNCITRAL Model Law on Electronic
of factoring. I would like to point out that before the UNIDROIT Commerce (1996), the UNCITRAL Model Law on Electronic
Model Law, the African Export-Import Bank (Afreximbank) had Signatures (2001), the United Nations Convention on the Use of
been at the forefront of the promotion of a facilitative legal and Electronic Communications in International Contracts (2005)
regulatory environment for factoring to thrive. Afreximbank’s and the UNCITRAL Model Law on Electronic Transferable
efforts culminated in the launching of the Afreximbank Model Records (2017). These instruments help guide both countries
Law on Factoring in 2016, which has been adopted by many and private parties on the rules for equal treatment of
African countries, notably Mali, Togo, Burkina Faso, Niger, CÔte electronic and paper-based information and legal recognition
d’Ivoire and The Republic of Congo. Some African countries, of electronic transactions and processes.
such as Egypt, have used the Afreximbank Model Law as a guide
in developing local laws, while others are at different stages EK: Yes, I see several challenges. Notably, internet penetration
of adopting the law. The UNIDROIT Model Law complements is not the same for all continents. E-signatures and e-invoicing
Afreximbank’s support of the creation of enabling legal and require fast and uninterrupted internet connections.
regulatory reforms, which has been evolving for more than Inaccessibility may stymie total acceptance of these new
15 years now. methods of consummating factoring transactions. In addition,
electronic transactions increase the possibility of fraud,
RS: The FCI Legal Study highlights the growing acceptance of particularly with respect to the potential forgery of signatures
electronic communications, invoicing and signatures. While and invoices. Not all factors have sufficient technology, internal
these have certainly contributed to the ease and convenience controls, or procedures to detect fraud.
of the execution of factoring transactions, do you see any
challenges associated with them? Furthermore, many factors must invest in and develop
technological and other infrastructure to adapt and transact
MD: Digitalisation and technologies present opportunities, business electronically. Though this may be a short-term
but challenges must also be carefully addressed. For instance, problem, it would still affect prospective and emergent factors,
many jurisdictions recognise electronic invoices as assets that especially from a cost perspective. Lastly, using e-signatures
embody the receivable. Thus, their holders may acquire rights to create a valid and binding contract can be challenging,
to the receivable. The rights of these holders may conflict with raising significant legal issues, particularly if an e-invoice or
factors that perfected their transfers by registration. Another e-signature is disputed in a jurisdiction with underdeveloped
challenge arises when a factor acquires receivables on a digital or emerging legal and regulatory frameworks for electronic
platform, assuming that recording of the transfer on the communications.
platform protects it against competing claims. Laws need to
specify what rights transfers of electronic invoices, whether or continued on page 10
not on platforms, convey on transferees. While digitalisation
and technologies undoubtedly streamline the processes within
the relationship between the factor and assignor, they may also
generate legal uncertainty.

FCI Annual Review 2024 9

Roundtable Discussion | The Interconnection and Future of the recent Three Legal Factoring Initiatives

RS: The FCI Legal Study reports that, in many cases, the RS: The majority of countries participating in the FCI Legal
resolution of a dispute in a lower court can take up to two Study report that international conventions, such as the
years, with an additional two years to resolve an appeal from UNIDROIT Convention on International Factoring, the United
a lower court ruling. As the Legal Study also confirms that Nations Convention on the Assignment of Receivables in
arbitration and mediation are available in most countries, do International Trade and the United Nations Convention on
you see these methods as more expedient and efficient for Contracts for the International Sale of Goods have not yet
resolving disputes? Are there any impediments to employing been adopted as part of their respective country’s laws.
these methods? As each of these international conventions has specific
valuable contributions to facilitate international trade, in
MD: Arbitration and mediation are more expedient methods your view, what is the best way to encourage wider adoption
of resolving disputes, but they may be costlier. Technology of all or significant portions of these conventions?
has created even more efficient and less expensive online
dispute-resolution mechanisms. Enforcement and resolution of MD: Each of these three conventions makes a different
disputes is less of a concern to a factor purchasing a receivable contribution. The Vienna Sales Convention is one of the
than to a lender financing inventory or other hard assets. most successful commercial law treaties ever, as evidenced
A predictable legal regime, along the lines of the UNIDROIT by its ratification in 97 States. The UNIDROIT Convention
Model Law on Factoring, reduces legal risks, including disputes, is considered outdated and applicable only to a narrow set
by providing a transparent source of information to resolve of factoring transactions. Its further ratification should not
conflicting claims – a factoring registry. be encouraged. The UN Receivables Convention became
the backbone of the UNIDROIT Model Law on Factoring by
WB-W: Dispute resolution and enforcement remain an issue addressing several critical aspects of international assignments
in many countries, even where recent regulatory and private of receivables and international receivables. Collective efforts
law reforms have taken place. Efficient dispute resolution should be shifted to promoting the implementation of this
and enforcement regimes remain essential to expand global Model Law that would render the ratification of the two treaties
factoring practices, as parties are unlikely to buy receivables governing assignments of receivables redundant. We should
and expand credit if they are not confident they will be able avoid creating conflicts and overlaps when multiple laws may
to enforce their legal interest if a dispute arises. Whether apply to a receivables finance transaction.
judicial processes, arbitration or mediation provide the most
efficient and cost-effective mechanism for parties to resolve WB-W: The UNIDROIT Convention on International Factoring
disputes will vary between jurisdictions. The continual (1988) and the United Nations Convention on the Assignment
increase of ratifications of the 2018 United Nations Convention of Receivables in International Trade (2001) are crucial
on International Settlement Agreements Resulting from instruments designed to facilitate global factoring transactions
Mediation (the Singapore Convention) which now has 56 and would undoubtedly have done so if they had been widely
signatories and 14 States Parties is a strong indication that implemented. However, it is reasonable to conclude that
mediation will play a more central role in resolving disputes in neither treaty has yet had the desired effect in harmonising
coming years. international private law, having only attracted nine and two
States Parties, respectively.
EK: Arbitration and mediation certainly may be quicker and
more efficient. However, factoring is specialised, and there Legal reform is a challenging exercise in many countries and
may need to be more arbitrators and mediators available who often takes years. Two possible strategies might assist in
fully understand the complexities of factoring. I am concerned encouraging widespread adoption of international standards.
that there may be a significant lack of knowledge and expertise First, it is suggested that promoting "soft law" instruments
of the subject by persons willing to serve as arbitrators and such as the UNIDROIT Model Law on Factoring might be more
mediators, particularly in emerging jurisdictions. Many may effective as an initial step towards implementing international
need to be more familiar with the conceptual underpinnings, standards. The Model Law on Factoring provides a more
conduct, and operationalisation of factoring. In addition, flexible instrument for countries to consider, as it doesn’t
many countries do not presently have a robust and developed require countries to agree to every provision or undertake
mediation and arbitration system. Industry players may a treaty ratification process. Despite having only been
be willing to adopt arbitration and mediation but may be launched in October 2023, the Model Law on Factoring is
challenged where there is no existing infrastructure. already achieving some success, as it is in the process of being
implemented in several countries across the world, including
Malaysia, the United Arab Emirates and Ukraine. A second
strategy would be to promote international instruments with

10 FCI Annual Review 2024

Roundtable Discussion | The Interconnection and Future of the recent Three Legal Factoring Initiatives

a focus on the concrete economic benefits that implementation the success of the FCI Legal Study. First, I suggest that the FCI
will bring to countries rather than a focus on the technical legal Legal Committee could consider using the data from the 2023
rules (which can be analysed once a policy decision has been Legal Study to prepare an assessment of whether the legal
made to implement the instrument). The factoring industry is and regulatory rules in the 91 countries covered by the study
particularly well-positioned to undertake this kind of advocacy. are compliant with the core rules of the UNIDROIT Model Law
on Factoring, and the core policy recommendations of the IFC
EK: The first step is continuous education and training to Knowledge Guide. This initiative would have several benefits:
build capacity. Evidence has shown that such conventions are (i) it would provide a clearer picture of current global legal
quickly adopted when regulators and law makers understand and regulatory frameworks against international standards,
them. Organisations leading these adoption efforts should (ii) it would allow easier identification of priority areas where
always include participants from different parts of the world reforms are urgently needed, (iii) it would serve as a valuable
involved in law reforms in their respective jurisdictions, many tool for advocating to countries as to why they need to
of which may already be studying or attempting to implement undertake reforms and implement the relevant treaties/model
these conventions. Such inclusion will ensure that there laws, and (iv) it would further improve synergy between the
is global ownership. Participants would be able to provide FCI Legal Study, the UNIDROIT Model Law on Factoring and
local knowledge and expertise, which would be helpful in the the IFC Knowledge Guide. It is suggested that FCI, UNIDROIT
deliberations and adoption processes. and the IFC could work collectively on this enterprise under the
guidance of the FCI Legal Committee.
RS: Finally, what would you like to see expanded upon or
covered in the next FCI Legal Study? Second, I suggest the FCI Legal Committee consider preparing
a Factoring Practitioner’s Guide to accompany the UNIDROIT
MD: As the primary audience of the Legal Study is the factoring Model Law on Factoring. The Practitioner’s Guide would
industry, the topics covered provide helpful information. One explain how parties to a factoring transaction comply with the
aspect that may be expanded upon is the legal and regulatory Model Law and would become an international best practice
updates. For instance, the Legal Study notes adopting factoring guidance document that would be of great use to FCI Members.
laws in Africa. However, a law not based on an international
standard may become an obstacle to factoring. These updates EK: I would like to see many contributions focusing on other
could highlight some core elements of newly adopted factoring countries and jurisdictions, primarily developing and African
laws and regulations, assessing whether those features are countries. In addition, factors and actors in these jurisdictions
conducive to factoring transactions. should be part of the legal study in terms of providing their
experiences and challenges. Furthermore, institutions with
WB-W: There are two initiatives that I would encourage the continental knowledge and expertise, like Afreximbank, should
FCI Legal Committee to consider undertaking to build upon be included and consulted in such processes.

Bandra Worli Sea Link, Mumbai, Maharashtra, India.

FCI Annual Review 2024 11

Regional Updates 2023 Figures

Africa South and South East Asia

Africa represents a 1.3% share of the total world factoring South and South East Asia (SSEA) showed significant growth
volume. Factoring volumes continued to grow in Africa in of 12.5% in 2023 compared to 2022, rising from EUR 126 billion
2023. The total market adds up to EUR 3 billion, indicating to EUR 142 billion. The highest increase was in Singapore at
a significant growth rate of 13.5% compared to 2022, about 36.4%, followed by India at 10.2%. In 2023, EDI volume grew
the same increase as the previous year of EUR 41 billion. by only 5.3%, while other regions experienced a decrease.
South Africa, the largest market accounting for over 80% of We should expect India and Vietnam to grow stronger than
the entire volume on the continent, witnessed an increase other emerging markets in SSEA for years to come. India and
of 14%. Countries that led this growth included Mauritius, Gift City will play significant roles as the growth engine of this
Egypt, Tunisia, and others for 158%. This indicates that the region. Thompson Lui
African market continues its strong growth trajectory into the
foreseeable future. Nassourou Aminou CEE, SEE and the Middle East
Although the growth rate of factoring volumes in the Central
Americas and Eastern Europe (CEE) and Southeast Europe (SEE) region
In 2023, the Americas Region represented 6% of global last year was less robust than the previous year’s expansion,
factoring volume. South and Central America saw an increase 2023 was still a productive year compared to the region’s
of 4.3% to EUR 129 billion. North America decreased by 10.7% economic growth rates. While total transaction volume in
to EUR 92.8 billion. The region’s total domestic factoring the region increased by 25.5% in 2022, it experienced single-
volume reached EUR 222 billion, while international factoring digit growth in 2023. Countries such as Romania, Hungary,
exceeded EUR 11 billion. Two-Factor System international Slovenia, Croatia, Serbia, Poland, and Turkey led the growth
factoring dropped by EUR 0.7 billion from EUR 5.8 billion in in the CEE and SEE region. By contrast, turnover in the Middle
2022 to EUR 5.1 billion in 2023, representing 20.5% of total East remained stagnant compared to the previous year. This
volume. This decrease occurred in the volume of imports slowdown can largely be attributed to challenges in obtaining
factoring in North America. Latin America & Caribbean (LA&C) data rather than a decrease in turnover. Betül Kurtulus
maintained almost the same volume as last year, with exports
outweighing imports. Growth in 2022 marked the first time the European Union
LA&C sub-region surpassed the billion-euro threshold, which In 2023, the total European Union turnover reached
was happily confirmed. Overall, the region experienced positive EUR 2.443 billion, an increase of 2%. After two years of
growth, which is very encouraging. Alberto Wyderka double-digit growth, we expected a lower increase due to the
negative dynamics of the EU GDP, which dropped to 0.4%
North East Asia from 3.5% in 2022. The ECB’s severe policy to curb inflation
North-East Asia recorded 7% growth in 2023. Mainland China led to rapid increases in lending rates, coupled with conflicts
was the main driver, with a 10% increase over the previous between Russia and Ukraine and Israel and Palestine. Despite
year. Despite an economic slowdown in China, such strong this, the European factoring market remains the most
growth is remarkable. It reflects that factoring and supply important globally, representing 66% of the world market.
chain financing benefit from China’s macroeconomic policies, The penetration rate of factoring over European GDP in 2023
which have shifted focus from the property sector to the was stable at 12%, proving its importance in the European
manufacturing sector to support the real economy. China economy. International factoring also remained stable at 22%
accounts for 81% of the region’s market. However, Hong Kong’s of the total turnover. Non-recourse factoring (53%) was higher
market underperformed, shrinking by more than 20%. Japan than recourse factoring, as clients sought to cover debtors’ risk.
experienced modest and steady growth, while Taiwan saw Funding of EUR 304 billion supports around 303,000 European
a surprising drop of 14%. Lin Hui clients, aiding economic development, employment, and
business success. Fausto Galmarini

From left to right:

● Nassourou Aminou, FCI Regional Manager

Africa
● Alberto Wyderka, FCI Regional Director
Americas
● Lin Hui, FCI Regional Director North East Asia

12 FCI Annual Review 2024

Regional Updates Legal, Regulatory and Advocacy

Africa North East Asia

The initiatives undertaken in previous years by Afreximbank In 2023, China implemented a series of major financial
and FCI to support regulatory reforms and promote the model regulatory reforms and measures.
factoring law in Africa continue to show success. Incredible
progress has been made in West Africa in adopting the law. The National Financial Regulatory Administration (NFRA)
was formally established to enforce unified supervision,
Some countries members of the Central Bank of West Africa consolidate financial market order, contain risks in the
(BCEAO) have started the domestication of this uniform financial sector, and steer financial resources flow to the real
factoring law based on the Afreximbank factoring model law, economy.
namely: Niger, Togo, Burkina-Faso, Mali and Côte d'Ivoire.
China Securities Regulatory Commission (CSRC) stepped up
At the same time, DRC changed the banking law to include its crackdown on financial frauds by listed companies. SASAC,
factoring into a new banking law as a banking product to allow the supreme governing authority of SOEs, banned SOEs from
banks and non-financial institutions to issue this product. trading to obtain financing.
Some countries, notably Nigeria, Kenya, and Madagascar are
still finalising laws in this direction. Nassourou Aminou Combining these policies will undoubtedly create a favourable
environment for factoring to better serve China’s real
Americas economy. Lin Hui
The UNIDROIT Factoring Model Law (FML), recently concluded
and in which FCI had crucial participation in its drafting, was South and South East Asia
distributed to members and associations of the region for 2023 was a year when FCI planted seeds with some of the
them to review it, have their opinions and compare it with the regulatory bodies and started to see some actions in terms of
country's factoring law, (if it exists), and improve it if deemed working together in this regulatory landscape. We have begun
necessary, and for countries that do not have a factoring law, engaging with key markets like India, the Philippines and
let the FML serve as inspiration. Vietnam.

During the year, I held meetings with regulators, especially India, for instance, FCI has started to explore the possibility
from countries where factoring is very important and there is of working with the regulatory body of GIFT City India, where
positive concern about the growth they are observing. These the jurisdiction is encouraged to innovate to cope with
advocacy actions are essential to expand the markets in which the exponential growth of international trade and foreign
we are present and promote new financial instruments in some investment. FCI should expect to work with the International
countries. In this way, we help to adapt regulatory frameworks, Financial Services Centres Authority (IFSCA) towards some
disseminate good practices and correct financial principles of common goals and create synergies from 2024 and onwards.
this business, with a special focus on the solution for cross- We expect the Philippines and Vietnam to develop swiftly in
border operations, especially using our model. this field. Thompson Lui
Alberto Wyderka
continued on page 14

From left to right:

● Thompson Lui, FCI Regional Manager South

and South East Asia
● Betül Kurtulus, FCI Regional Director Central,
Eastern and South-Eastern Europe and the
Middle East
● Fausto Galmarini, Chair EUF

FCI Annual Review 2024 13

Regional Updates | Legal, Regulatory & Advocacy

CEE, SEE and the Middle East European Union

Throughout 2023, FCI remained committed to supporting legal In 2022, the European Factoring and Commercial Finance
and regulatory reforms to facilitate factoring in the Central industry faced several issues:
and Eastern Europe (CEE), Southeast Europe (SEE), and
Middle East regions. We collaborated closely with esteemed ● the CSDD directive that requires all businesses to manage
partners such as the European Bank for Reconstruction their entire operational environmental and social impacts,
and Development (EBRD) and the International Finance ● the EBA’s final non-banking lending report, the EU-wide
Corporation (IFC) World Bank Group to bolster the implementation of Basel III/CRR3 (including NDOD),
infrastructure of these regions. ● the ongoing works on AML/CFT legislative package band
the new AMLA,
Numerous engagements and developments occurred with ● digital age VAT and
regulators and lawmakers in the region, paving the way for ● the new directive harmonising aspects of substantive law
advancements in the legal framework governing factoring. on insolvency proceedings.
Noteworthy progress includes ongoing factoring law studies
in Jordan, Uzbekistan, and Ukraine, with active involvement Regarding the CRR Reform/Basel III, the EUF supported the
from their central banks, ministries of finance, and investment position of the EU Council that doesn’t include factoring in
banks. In 2024, we anticipate enacting regulatory reforms the ancillary services and welcomed the amendments on
supportive of the factoring sector in these countries. Article 183 and Article 213 which delete required coverage of
frauds that credit protection needs to be eligible for credit risk
Furthermore, significant strides have been made to enhance mitigation.
the legal infrastructure for government-backed digital
solutions. Initiatives are underway to expand the presence of As for the eligibility and use of credit insurance as a CRM
successful invoice registration centres akin to Turkey's model, technique, EUF welcomed that the EBA and EIOPA work in
particularly in Middle Eastern countries. We are witnessing a close cooperation.
growing demand for education from these countries' financial
sectors and regulators, reflecting a keen interest in fostering In regard to the issue of the NDOD, the EU Council invited EBA
sectoral development. to consider the need for providing flexibility to institutions.
The EU Parliament stated that EBA shall update its default
These government-supported digital solutions are pivotal guidelines before June 2024. Fausto Galmarini
in advancing the receivable finance sector. They streamline
processes and contribute significantly to the sector's growth
and sustainability. Betül Kurtulus

The Storms River Bridge, also known as the Paul Sauer Bridge, Eastern Cape of South Africa.

14 FCI Annual Review 2024

Regional Updates Promotion and Awareness

Africa South and South East Asia

FCI partnered with Afreximbank and the FAPA Grant to In the year 2023, we supported promotion in certain markets in
conduct factoring promotion and awareness campaigns the area. In the first quarter, we joined efforts with some local
through conferences, workshops, and webinars. Working with stakeholders like the International Chamber of Commerce (ICC)
MFW4A and the Association of African Development Finance and Bangladesh Institute of Banking Management (BIBM) to
Institutions (AADFI), FCI held a webinar on Factoring training promote international factoring and visit local members (many
under the FAPA Grant on 30 March 2023. In partnership with newly joined). Also, in the same quarter, FCI held a promotional
the Central Bank of West African countries (BCEAO), FANAF, event in GIFT City India in the finance and technology area to
and FCI, a Factoring and Credit Insurance workshop occurred explore the fintech development and ‘marketplace’ possibilities
during the Regional Conference in Senegal in June 2023. and our event was very well received. In the 3rd quarter, I spoke
From 31 July to 3 August 2023 in Abuja, Nigeria, FCI organised at an event that IFC and FCI jointly organised together with
consulting and workshop training and capacity building for local members and sponsors in risk management and supply
nine emerging and established banks and factoring companies, chain management. I also took the opportunity to meet with
aligning with the FAPA grant guidelines. This workshop was local members in Singapore during the same week. Thompson
tailored to beneficiaries’ needs. In October 2023, FCI joined Lui
the Afreximbank Trade Finance & Factoring Seminar in Lagos,
Nigeria, where it organised a one-day workshop on ’The Future CEE, SEE and the Middle East
of the Factoring Industry in Africa: Where will we be by 2030?’ In 2023, FCI led numerous initiatives in the region, advancing
in partnership with the Central Bank of Nigeria and NEXIM. FCI the factoring industry and fostering key stakeholder
also co-hosted with Afreximbank the IATF 2023 Africa Chapter collaboration, to promote international factoring, reverse
Factoring Exposition & Workshop in Cairo, Egypt, in November factoring, and Islamic international factoring. Our annual
2023. Nassourou Aminou CEE conference saw significant attendance from members,
observers, and regulators. The success of FCI’s regional
Americas gatherings continues to grow each year, encouraging
There was important labour with Associations, with collaboration and knowledge exchange among our expanding
presentations at FELAFAC (the Latin American Factoring membership base. We also hosted workshops at events like the
Federation), where we are members, and I participated, EBRD Annual Meeting in Samarkand and the GTR conference
like every year, in FELABAN, the best event in the region to in Riyadh, focusing on best practices in the factoring industry.
discover new potential members – I also met Multilateral After the FCI Annual Meeting in Marrakech, we partnered with
Organisations (IDB Invest and some Regulators), to promote EBRD to host a joint conference on Factoring and Supply Chain
the financing of national and cross-border accounts receivable, Finance. Additionally, we participated in the EBRD TPF Trade
especially the Two-Factor System (2FS), and to strengthen Finance Forum in Vienna. Our commitment to supporting
FCI’s brand awareness – always fulfilling FCI’s mission: to Ukraine remained steadfast, as demonstrated by our
be the voice of the industry and promote the growth of involvement in the UATFF Annual Trade Finance Conference.
our community. I also participated in the IFA Congress in We also engaged in partner events across the region, including
New Orleans, and from there I visited members in the USA. in Baku, the UAE, and Uzbekistan. In Istanbul, we had
Education is and will be a high priority in the region. Virtual meaningful discussions about our services with both current
and face-to-face tailor-made training was given to some banks and prospective FCI members and clients. Betül Kurtulus
on the mechanics of our 2FS solution, risks, and legal and
commercial training. Alberto Wyderka European Union
As underlined in the trend of the market, the European
North East Asia Factoring and Commercial Finance market represents more
In March, our members in Beijing celebrated the 30th than two-thirds of the world’s global turnover. It is gratifying
anniversary of ‘FCI in China’, looking back at the development to see the results of our efforts in supporting effectively the
of the Chinese market from scratch. Immediately following European real economy. We also work to reinforce these key
this, we held a far-reaching seminar in Shanghai to discuss messages with our regulators and lawmakers and to improve
the new challenges and goals of FCI in China for the next the way we provide our services for the benefit of all the
30 years. Factoring is no longer a niche market in China; it is stakeholders. In April 2023, EUF and FCI jointly organised the
about enabling a wider range of businesses and their supply EU Factoring and Commercial Finance Summit in Cologne. It
chains with enhanced liquidity and risk management support. was very successful, thanks also to the participation, among
The focus of the new China strategy is to create a marketplace others, of Mr Gaetano Chionsini, Head of Statistics EBA,
of productive engagement in China where the power of FCI’s who gave a snapshot of the lending market and NPL. The
member network can be fully unleashed, providing a new programme addressed the latest updates and promoted the
paradigm for FCI’s global marketplace. Lin Hui impact of the factoring industry in Europe. Fausto Galmarini

FCI Annual Review 2024 15

Regional Updates Membership Mobilisation

Africa South and South East Asia

We have 46 members in the African region, representing SSEA has been growing its member base for the past year, and
10% of the total FCI membership. Six new members joined there were 9 new additions and three terminations in 2023. I
FCI during the past year. These were Fidelis Finance Group, believe this net addition in membership is promising even for
Burkina-Faso, Edge Plus Capital (EP Capital), Nigeria, emerging markets, but then again, unfortunately, SSEA still
Corplease, Egypt, African Trade Insurance (ATI), Kenya, Kweli has not found the product FCIreverse suitable to grow in the
Financial Service, DRC and Bridge Bank Group (Côte d’Ivoire). region. A few members inquired but were discouraged after
At the same time, we had Three (3) Terminations during the hearing average costs and lack of service support in Asia.
year 2023. Nassourou Aminou
For the past year, the SSEA region has benefited from the
Americas repaid growth of emerging markets within the area, especially
As part of the activity to attract new members to our since we had some innovative platform providers joining
community and observe budget restrictions, in 2023, I held FCI immediately upon FCI's creation of a new partnership
face-to-face meetings with 45 banks, including members and for FINTECHs. While we only have 2 affiliate members in
prospects, and NBFI. To this, it must be added more than 30 the region, FCI is planning to support them in upgrading to
virtual meetings with prospects. I also participated in the IFA associate capacity to fit their growing needs. Thompson Lui
Congress, USA FELAFAC and FELABAN Assembly. Three new
members joined our community during 2023, one in México CEE, SEE and the Middle East
(INTERCAM Banco) as an Associate Member, two in the USA In response to the positive developments in the Central and
(Standard Chartered Bank NY Branch and TCLG Inc.), one as Eastern Europe (CEE), Southeast Europe (SEE), and Middle
an Associate Member and the other one as a Partner Member. East regions, FCI welcomed seven new members in 2023.
Only 2 companies ceased to be members, so the balance is still These additions included members from Kosovo, North
positive. I always like to highlight that 86% of our members are Macedonia, Romania, Saudi Arabia, Serbia, Georgia, and
Associate members and 25% of them are Full members. Three the UAE. Betül Kurtulus
are Affiliate members, three are Sponsors, and one is a Partner.
All of them form a networking structure that also partly European Union
explains the growth of 2FS volumes in the region. EUF has relationships with nearly all national factoring
Alberto Wyderka associations and will continue efforts to further expand
its membership. To reinforce lobbying with regulators
North East Asia and European authorities, the EUF has established closer
The membership structure in the region is dominated by banks cooperation, particularly with Leaseurope and the European
with a high penetration rate and a stable number of members. Banking Federation (EBF). Fausto Galmarini
Most of them are mainly engaged in export factoring and are
therefore keener on adding banks from other regions as import
factors rather than adding new members from this region.
A much more proactive approach would be to encourage
FCI business between members in the region, thus prioritising
their import factoring and FCIreverse business. Non-bank
factoring companies in the region are currently mainly
from China. While most are in a phase of contraction and
repositioning, some are in the process of transforming
themselves into FinTech companies to continue to be part of
our ecosystem. Lin Hui
Rainbow Bridge over Tokyo Bay and Daiba Island, Tokyo, Japan.

16 FCI Annual Review 2024

Regional Updates Challenges

Africa North East Asia

Despite growth in factoring volumes, several challenges The fragmentation of global trade due to geopolitical
remain, including insufficient knowledge about the product, considerations is causing unprecedented challenges to
education, skills, and experience in the factoring industry; international cooperation. While globalisation is not dead, it
legal environment and regulation: lack of legal framework is being reconfigured along geopolitical lines. Our region has
in different countries and capital requirements; economic suffered significantly. We must all adjust and adapt to this
environment and access to working capital in some countries: process. The region’s businesses, supply chains, trade flows, and
inflation, high-interest rates, cost of lending, and securities; patterns are changing rapidly. They demand solutions for new
difficulties in obtaining reliable credit information and credit markets (e.g., OBOR countries), new products (e.g., automotive,
insurance coverage in some countries and with certain buyers; batteries), and new channels (e.g., Temu, Shein), and this
IT systems and software to manage factoring transactions requires us to localise more in the region for rapid response and
effectively; long and costly implementation of factoring resilience. Lin Hui
business processes, training, capacity building, and IT
platforms; and cultural and language barriers to international South and South East Asia
factoring. Nassourou Aminou New members from this SSEA region are almost entirely export
factoring driven and rely heavily on FCI’s import factoring
Americas members to support their international factoring development.
One of the main challenges in LA&C is achieving greater Some of these new members are concerned about the
activation of FCI’s 2FS model, which strengthens members’ relatively tight credit policies and selectiveness of their import
sense of belonging. FCI cooperates with members by linking counterparties – three main destinations for this export
them, establishing connectivity, developing the correspondent emerging market, namely the USA, EU and China. While USA
concept, providing training, and organising meetings with and EU markets have relatively larger pools of import factoring
clients and associations. If members are unwilling to provide service providers to support their needs, China still needs to
Import Factor (IF) services and take risks, implementing the improve in terms of offering competitive and meaningful IF
2FS model will be challenging. In North America, members services. Also, speaking about import factoring capabilities,
offer excellent IF services. The challenge is to show LA&C India and Vietnam, which are growing in terms of importing raw
members the business potential of becoming an IF, which can materials for manufacturing, may need to plan to take on this
generate income and open opportunities for other businesses challenge. Thompson Lui
while respecting their risk standards and policies. Banco Chile,
BanColombia, and Exicon stand out as IFs in LA&C. Several continued on page 18
others generate volumes that could be larger. The challenge
is to help them grow, take more risks, and attract those
undecided about import factoring.

Improving legal and regulatory frameworks for adequate

factoring treatment remains a challenge. UNCITRAL’s Factoring
Model Law can inspire current factoring laws or the design of
new ones. FCI and national Factoring Associations have a role in
these issues. The speed and quality of communication services
between correspondents should improve and increase in other
regions. Education and appreciation of this issue by members
is another challenge, particularly convincing them it is an
investment rather than an expense. Alberto Wyderka

FCI Annual Review 2024 17

Regional Updates | Challenges

CEE, SEE and the Middle East European Union

The CEE and SEE regions face numerous challenges from Regarding the review of the Late Payment Directive and the
internal and external factors. The economic downturn, introduction of the Late Payment Regulation (LPR), the EUF
worsened by geopolitical tensions like Russia’s invasion sent a position paper to the EU Commission highlighting that
of Ukraine, has resulted in higher financial risks, such as the 2011 directive has not decreased late payments, especially
exchange rate fluctuations and regulatory hurdles. Corporate in the public sector, where public administration debtors
insolvencies are rising, and economic growth lags behind are still paying late. The new LPR, which obligates payment
potential, with businesses facing higher input costs and lower within 30 days, will likely increase funding needs (estimated
foreign demand. Despite some signs of consumer-driven at EUR 150 billion by the European Association of Businesses),
recovery, companies in these regions continue to confront necessitating greater SME resilience.
pressures from rising commodity and labour costs, creating a
challenging business environment in 2024. Forms of financing like factoring are not part of the problem
but rather part of the solution to the late payments issue.
Germany remains the primary trading partner for most CEE Limiting or prohibiting ‘bans on assignments’ would likely
economies, and there are signs of a consumer-driven rebound increase the availability and use of factoring in the EU. We
in daily necessities, supporting economic activity in the CEE hope the trilogue will accept our proposal to remove the ban on
region. These conditions suggest a continued need for working assignment from supply contracts. The CRR review requires an
capital in the factoring sector. effort to introduce new elements in the compromise text of the
European Parliament and Council of the European Union.
In the Middle East, sustainability is crucial for economic
diversification. The region benefits from the global economy’s In a recent roundtable with EBA, the use of credit insurance
resilience, facilitated by lower commodity prices and vigilant as a risk mitigation technique was examined, but we didn’t
policy measures to counter inflationary pressures. However, expect positive feedback because European insurers could not
ongoing political risks, shipping disruptions, and lower oil provide data evidence. We believe the best result for EUF is to
production create uncertainty and uneven recovery across the extend the technical past due from 30 to 90 days, which would
Middle East and GCC (The Gulf Cooperation Council). significantly reduce automatic defaults, even if not entirely.
Fausto Galmarini
While sustainability and green financing are key priorities
across all regions, transitioning to these conditions may pose
short-term challenges, particularly for Small and Medium
Enterprises (SMEs). These challenges may affect trade finance
and Supply Chain Finance (SCF) transactions, impacting
the broader economic landscape. As businesses adapt to
sustainability requirements, smaller enterprises may face
initial hurdles navigating the complexities of becoming more
environmentally friendly. Betül Kurtulus
Corrientes Bridge, Pontevedra, Spain.

18 FCI Annual Review 2024

Regional Updates Outlook 2024

Africa South and South East Asia

At the end of 2023, we saw the adoption and domestication of SSEA had a great year 2023, and no market keeps growing
the factoring law in one country in West Africa (Côte d’Ivoire), and defies the statistic curves. We can still reasonably expect
resulting in significant enthusiasm for the launch of factoring healthy growth in terms of memberships and activities as well
activities and opportunities studies made by The International as factoring volume. We also need to keep in mind that budget
Finance Corporation (IFC) who released during the year 2022 constraints can hinder growth and maintaining meaningful
some market studies into five countries who are showing partnerships. In many markets, I have yet the budget to
a lot interested, with an estimated potential volume and travel to meet new members for the first time since I joined
opportunities on Factoring and SCF solutions into different FCI. Hopefully, I can grow my membership base in Indonesia,
following countries: Morocco (USD 8 billion), Nigeria (USD 27.1 Thailand and Malaysia to justify a visit in 2024. Thompson Lui
billion), Kenya (USD 28.7 billion), Ivory Coast (USD 6.5 billion)
and Uganda (USD 6.5 billion). Afreximbank's FAPA Grant is CEE, SEE and the Middle East
providing some consulting activity under capacities building The economic outlook for Europe in 2024 is promising, with a
to train around 19 remaining Banks and emerging Factoring projected rebound in export growth by 2.2%, an improvement
companies into this programme, enabling the launch of from the previous year. This export growth is expected to be
Factoring activities that will have a significant impact in the accompanied by a recovery in import trade volume, forecasted
whole African region. Nassourou Aminou to increase by 1.6%.

Americas Easing interest rates anticipated in 2024, alongside an

Challenges are a constant, much like political changes and expected recovery in economic activity and increased demand
uncertainties. However, the outlook for the accounts receivable for European goods, makes the outlook more optimistic.
financing industry remains positive and promising. Regional Anticipated improvements in export and import volumes
trade is growing, and accounts receivable will continue to suggest a positive trajectory for the European economy in
expand, attracting banks and factoring companies. In 2023, 2024, aiming for resurgence and stability. A positive factoring
volumes grew again, and we expect this trend to continue in market is expected in 2024 for CEE and SEE regions.
2024. In October 2024, FCI will host an event in Miami on SCF,
Factoring, and 2FS, focusing on legal aspects, in collaboration The Middle East is expected to grow by 2.3% in 2024 as it
with IDB Invest and FIBA. benefits from favourable commodity prices. The region is also
● FIBA: Our ambition is to collaborate in various fields, using commodity profits to diversify into new sectors and
prioritising education and exploring other joint events. markets, further driving growth. Betül Kurtulus
● IDB Invest: We aim to strengthen ties with this organisation,
similar to our work with EBRD and Afreximbank. European Union
EUF expects slightly better turnover growth in 2024 due to
We are optimistic about the growth and consolidation of open EU GDP recovery and lower interest rates from reduced
account financing, factoring, and especially our flagship 2FS inflation. Geopolitical conflicts pose challenges. EUF has three
model, thanks to our dedicated current and future members. main issues.
Alberto Wyderka
First, NDOD causes many ‘false positive’ errors by classifying
North East Asia buyers as default due to overdue payments. Extending the
The biggest certainty in 2024 is uncertainty. However, if we technical past due from 30 to 90 days could help but requires
can’t handle uncertainty, we can’t handle growth. Navigating CRR revision. EUF relies on members to gather needed data to
uncertainty requires a growth mindset and self-awareness. prove factoring's lower risk to EBA.

We are very aware of how tremendous market growth will Second, the LPR requires debtors to pay invoices within 30
be created in Northeast Asia as a hub for global merchandise days. EUF hopes the final draft prohibits or limits assignments,
trade if members here can reach or even surpass the market as factoring addresses late payments.
sophistication of their counterparts in today's European
markets. Of course, we are also very aware of the region’s Third, CSDD mandates due diligence on corporate
strengths and bottlenecks, which require our determination environmental and human rights impact. EUF seeks exemption
to change. 2024 is an important window of time for us, and it is as compliance would be burdensome for the industry.
already here. Lin Hui
EUF remains committed to protecting the factoring industry
and its role in supporting the real economy. Fausto Galmarini

FCI Annual Review 2024 19

FCI Academy Building a Resilient Trade Environment:
The Role of Education in Fraud
Detection in International Factoring

In the dynamic world of international trade, where Aysen Çetintas,

transactions span borders and involve numerous parties, the FCI Education Director
risk of fraud is ever-present. With the rise of open account
transactions in supply chain finance, where goods are shipped
and delivered before payment is made, the importance of
education in detecting and avoiding trade fraud cannot be
overstated. Educating stakeholders about the intricacies of
trade finance and the various fraud schemes empowers them
to make informed decisions and safeguard their businesses.

Here's why education is crucial in this realm:

● Understanding Fraud Schemes: ● Recognising Red Flags:

Education provides Banks and Factors with insights into the Education equips the Factors with the ability to identify red flags
different types of fraud schemes prevalent in trade finance. that may indicate potential fraudulent transactions. Suspiciously
From invoice fraud to false documentation and identity theft, low prices, unusual payment terms, and discrepancies in
awareness of these schemes enables stakeholders to recognise documentation are all signs that warrant further investigation.
warning signs and take proactive measures to mitigate Through training and awareness programmes, stakeholders
risks. By understanding how fraudsters operate, businesses develop a keen eye for detecting anomalies in data and
can implement effective controls and protocols to prevent abnormalities in the behaviour of sellers and buyers, enabling
fraudulent activities. them to intervene before falling victim to fraud.

Courses
available on demand

Introduction to Factoring and Receivables Finance Course

Fundamentals on Domestic and International Factoring Course

Supply Chain Finance and Reverse Factoring Course

For more information and registration visit

fci.nl

20 FCI Annual Review 2024

FCI Academy | Building a Resilient Trade Environment: The Role of Education in Fraud Detection in International Factoring

● Strengthening Due Diligence: ● Building a Resilient Supply Chain:

Educated factoring teams understand the importance of Ultimately, education is essential for building a resilient and
conducting thorough due diligence on their trading partners. robust supply chain ecosystem. By equipping stakeholders with
From verifying credentials and past performance to assessing the knowledge and skills to detect and prevent fraud, businesses
reputations and compliance records, due diligence is essential can safeguard their supply chains against disruptions and losses.
for mitigating fraud risks. Education provides guidance on Education fosters collaboration, information sharing, and
effective due diligence practices, empowering businesses continuous improvement, enabling businesses to stay ahead of
to make informed decisions about their counterparties and emerging threats and adapt to changing market conditions.
minimise exposure to fraudulent activities.
Fraud prevention holds significant value
● Embracing Technology Solutions: for Factors
In today's digital age, technology plays a crucial role in fraud
detection and prevention. Educating Factors and other The value of fraud prevention to financial institutions operating
stakeholders about the latest technological advancements in open-account trade finance extends beyond financial
in trade finance, such as blockchain, AI-powered analytics, considerations. It encompasses protecting reputation,
and secure payment platforms, enables them to leverage mitigating financial losses, complying with regulations,
these tools to enhance transparency and security in their enhancing customer trust, improving operational efficiency,
transactions. By embracing technology solutions, businesses gaining a competitive advantage, and supporting economic
can automate processes, improve data integrity, and reduce the growth. Financial institutions safeguard their interests by
risk of fraud. investing in robust fraud prevention measures and contributing
to a secure and resilient trade finance ecosystem.
● Promoting Transparency and Compliance:
Education fosters a culture of transparency and compliance In conclusion, education plays a critical role in detecting and
within organisations. By educating stakeholders about relevant avoiding trade fraud in factoring and other types of open account
trade regulations, compliance requirements, and ethical transactions within supply chain finance. Businesses can
standards, businesses can ensure that all transactions are mitigate risks, enhance transparency, and build resilient supply
conducted in accordance with legal and ethical guidelines. chains by empowering banking and factoring professionals
Transparent practices not only deter fraud but also build with knowledge about fraud schemes, red flags, due diligence
trust and credibility among trading partners and regulatory practices, technology solutions, and compliance requirements.
authorities.
Through ongoing education and awareness initiatives, Factors
can stay vigilant and proactive in safeguarding their businesses
against fraud in the dynamic world of international trade.

Tolerance Bridge, Dubai Water Canal, Business Bay, Dubai, United Arab Emirates.

FCI Annual Review 2024 21

GIAR 2023 Global Industry Activity Report

Introduction Ciprian Radu,

FCI Business and
No FCI Annual Review is replete without a deep industry IT Solutions Manager
analysis, which the Global Industry Annual Report (GIAR)
provides to our dear readers. Hence, it is once again time
to reveal the 2023 outcome as reported by our dedicated
members. We’ve felt that for this year, our data collection
and analysis of the Fintech sector is well covered; hence, we
decided to add a new question that tries to shed light on the
impact the credit insurance industry has on our business in
order quest to create a more focused and robust survey and
ultimately provide a more beneficial report on the global
factoring industry.

For the new readers, a short introduction is needed. This report central banks globally, hence the value in collating the key
has its origins dating back to 2009, and it includes data derived and accurate data at the country level. Whilst some countries
from the material captured within the FCI survey, which the (usually but certainly not exclusively the established developed
members have kindly completed. Members from across the markets) have sophisticated centralised methods for collating
world provide FCI with a unique vantage point by sending market information, others have little provision. Hence, we rely
their insights to FCI and offering a glimpse into their internal upon the best estimates from experts within these markets.
data points. The GIAR’s scope is to provide a unique analysis
of our Industry having two different angles: the first being the Enough with the disclaimers! So, here we are, the findings of the
quantitative and numerical aspects of the global industry, and 2023 GIAR Report…
the other is the usage of a wide range of qualitative elements
which provides an opportunity to assess the general sentiments Product analysis: Similar to the 2023 report, we will continue
and opinions of its key participants. to present how volumes are split by product based on the data
we received from our members. Since each member provides
Quantitative Analysis different products related to their market, this cannot be
denoted as a marker for a specific country.
I am sorry to report that, once again this year, the basis of our
analysis for 2023 does not incorporate all data as it happened in For 2023, we have determined the following product levels:
the previous years. So, as a disclaimer, this report is the closest
to reality that can be generated based on the figures we have Product Distribution GIAR 2023
received to date (approximately 46% response rate from our
members, down from the previous year’s 50% response rate, 60%
48%
leading to the conclusion that data collection is becoming 50%
more challenging as time progresses unfortunately). I have 40%
to say, with bitterness, that we are on a descending path with 30%
18% 17% 17%
the success of data collection, having in each year, at least 20%
since I am covering this part, a constantly reduced number of 10%
responses, making everything hard to corroborate and in the 0%
end to provide a more realistic picture of the global factoring
Recourse
Factoring
(without credit
protection)

Non-recourse
Factoring
(with credit
protection)

Reverse
Factoring
of Supplier

Invoice
Discounting
Finance

industry. I only hope for a great commitment by all of our

members in the future.

As in years past, the principal challenge for the survey

continues to be that in many countries, the infrastructure and Compared with 2022, 2023 shows a stark decrease in the use of
capability to collect and analyse data varies dramatically, so non-recourse factoring, a drop to 48% (56% in 2022). Of course,
the level of detail the individual markets provide remains highly this does not belittle the fact that most companies prefer non-
variable. One of the real challenges for the Receivables Finance recourse factoring services as a means for risk mitigation and
(RF) industry is to help people everywhere better understand off-balance sheet treatment, but this shows the first decrease
the importance, value and power of information to support since pre Covid period. Traditional non-recourse and Reverse
our public policy/advocacy discussions with governments and Factoring (also a non-recourse product) have a combined 65%

22 FCI Annual Review 2024

GIAR | 2023 Global Industry Activity Report

figure compared to the total (69% in 2022), while Recourse These figures have a relatively high level of uncertainty because
and Invoice Discounting reached a combined total of 35% they combine both whole turnover and spot-level types of
(30% in 2022). As mentioned in the past, a classic, well-known, relationships and are highly sensitive to market fluctuations,
important reason for non-recourse demand might also be structure, and conditions.
explained by its substantial value as a means to decrease the
cost of capital under Basel capital allocation requirements and ● Companies active in the Factoring Industry that serve the
the benefit of off-balance sheet treatment by corporates. pool of clients and debtors globally are estimated to be around
4,244 (4,199 reported in 2022).
The above product distribution does not reflect all the
countries. The relative proportions in individual countries ● Direct employment is estimated at around 120,000 (105,000
continue to vary, and the individual figures will reflect the in the 2022 report). We could mention that this number is highly
local market conditions, as well as the legal and regulatory correlated to the labour-intensive service that our Industry
environments; this chart shows what a "typical" country requires. Although as technology and automation continue its
distribution looks like. Whilst it should be noted that, for upward trend, we anticipate the figure will remain flat, even
example, many countries do not yet record any reverse with continued growth of the industry at the current rate.
factoring type business. However, we see factoring building quite quickly in the emerging
markets, so this could upend this conclusion.
Again, we see that Reverse Factoring (also referred to in certain
markets as Supply Chain Finance (SCF)/Confirming/Payables ● The average turnover per client is considered to have
Finance) continue to be for our members an important product, remained close to EUR 3.5 million, similar to past reports;
showing a market share of 19% (13% in 2022, 12% in 2021). The hence, we continue to deal mainly with SME businesses in a
significant increase in market share belies the growth story of number of terms based on the smaller end of the spectrum. Our
this important and relatively new means of receivables finance. data shows that our member’s figures representing their clients’
As reported by our members, many consumers continue to portfolios mainly consist of SMEs, close to 70% (64% in 2022,
increase their purchases from large ’big box’ retailers or via 70% in 2021 and 66% in 2020), as shown below:
large e-commerce platforms, users of reverse factoring in many
developed economies. As many of these larger investment- Total Number of Active Sellers 2023
rated corporate buyers have developed SCF programmes to
offer their vendors, more and more FCI members have entered 30% 29%
the space. Again, it is to be mentioned that FCI members only ● Small enterprise
capture a small percentage of the total reverse factoring ● Medium-sized enterprise
market globally. ● Corporate
41%

Industry Dynamics
● For this year, we continue to provide greater details of
Below, you can see how the business has evolved from year to the industry types within our respondents’ portfolios. The
year: member’s portfolio represents the breakdown of the types of
industries. Again, it seems that the Industry has its weighting
2023 was a year of steady growth compared with the booming towards Manufacturers and Distributors, as shown in the
year of 2022 for factoring. In 2023, we recorded only a single- picture below, highlighting the FCI members’ feedback. This of
digit growth rate of 3.6% (18.3% in 2022). Nonetheless, GDP course, cannot be denoted as a marker for a specific country.
penetration for the industry maintained its level of penetration,
showing a 4.27% increase compared to what we witnessed last Average of Industries Type of Sellers in Members Portfolio 2023
year (4.09%). Europe maintained its previous GDP penetration
rate for the industry of 10%, the highest in comparison to all 12%
2%
other regions, keeping in mind the fact that the industry is quite 2% ● Manufacturing
mature. We used current estimates for 2023 GDP data, the 9% 48% ● Distribution
source being IMF datasets available on the web. 7% ● Transportation
4%
● Construction
16%
Quickly looking at the figures: ● Services
● Utilities
● Client numbers are estimated to be around 1,097,000 ● Communications & IT
(1,045,000 in 2022), and the debtor numbers have reached an ● Other
estimated level of 25 million (23 million in 2022).

FCI Annual Review 2024 23

 GIAR | 2023 Global Industry Activity Report

Using the magnifying glass to highlight the impressive As a novelty for this year, we’ve asked our members to share the
Manufacturing figure of 48% (the previous year 45%), we can percentage of the buyer’s portfolio that an insurance company
see the following granular distribution by sub-types: covers and as shown below, 45% of our members are using
an insurance company to cover their buyers with an average
Manufacturing by Type 2023 of 42% of the number of the buyers being under an insurance
company.
7.62%
16.61% ● Food Members that use Credit Insurance Coverage for Buyers 2023
7.49% ● Textile & Garments
● Electronics
4.46% 40%
3.95% ● Wood, Metal products ● Yes
7.96% ● Machinery & Equipment 45% ● No
● Other ● Detail not shared

15%

For 2023, we again have a very high-level view of the

distribution of the type of Factoring Companies active in the
Receivables Finance Industry like in past years. This data Qualitative Analysis
derives from our members’ views, as they typically represent
the Top 5 Members by market within their countries. Where the One of the aspects that makes the GIAR survey unique is that
figures are available, the top five concentration ratio (CR5) was it provides an ongoing record and analysis of the perceptions
reported as 85% of the market (81% in 2022, 83% in 2021, 88% within the Industry on a wide range of topics and trends,
in 2020). Bank divisions appear to have increased their share including their potential effect on the Industry and their future
to 51% (49% in 2022, 46% in 2021, 53% in 2020), bank owned development. Each year, we ask respondents to give their views
subsidiaries showed the same figure from last year 23% (23% in on the status and direction of the Industry in their own country.
2022, 27% in 2021, 28% in 2020) whilst Independents increased Our sample data for this analysis includes member’s views from
by 2 points from previous year to 11% (9% in 2022, 10% in 2021, 46 countries/territories (51 countries/territories in 2022) that
7% in 2020). Again, as reported last year, the domination of have responded to the FCI survey.
commercial banks at the expense of independents continues
their strong trend in the industry. The first and key element to consider is Factoring Awareness &
Acceptance. This query tries to reflect the respondent’s view
For the third year since we started to collect data about on how they perceive their awareness and acceptance within
E-invoicing business (invoices that are issued, transmitted, their country. For the year 2023, compared to 2022, there is
received, processed and stored electronically), we have 47% still room for a considerable opportunity to build and develop
(48% in 2022, 44% in 2021) of the population confirmed that on past successes within the Industry. For Awareness, the
they use and accept such type of invoicing. Within the 47%, high position increased for 2023 to 28% from 24%, with 4
where our responders shared granular data, an average of points on the expense of the medium position, which showed
66% (66% in 2022 and 2021) of total invoices processed were a decline compared to last year’s survey (60% for 2022) to the
considered E-invoices. The same consideration as in the past current 56%. On the Acceptance of the product, we see that
report can be maintained as I can only assume that digital/e- it remained similar to last year’s figure at 22%, while for the
invoices will fully replace traditional paper-based invoices in medium, we see a drop to 58% from 59% recorded in 2022.
the near future.

E-invoice among Respondents 2023 Awareness Acceptance

28% 16% 22% 20%

21% 47%
● Yes ● Low
● No ● Medium
● Detail not shared ● High
32%
56% 58%

24 FCI Annual Review 2024

GIAR | 2023 Global Industry Activity Report

In a broader view, by region, shown below is the Awareness and

Acceptance view:

Awareness ● Low ● Medium ● High Acceptance ● Low ● Medium ● High

90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
Africa

Americas

CEE/SEE
ME

North East
Asia

South and
South East
Asia

Western
Europe

Africa

Americas

CEE/SEE
ME

North East
Asia

South and
South East
Asia

Western
Europe
Yet again, the trust in industry resilience is fully confirmed in the Turnover Level Outlook Profitability Outlook
responses received. Respondents continue to demonstrate a
high level of confidence and optimism that the Industry has the
capacity to continue to support businesses, with an important 42% 35% Positive
role in supporting SMEs and the real economy on a global scale. 46% 54% Neutral
In 2023, the trust in development outlook had an optimistic 12% 11% Negative
level of 56%, with a small decline from 60%. Negative
0%

20%

40%

60%

0%

20%

40%

60%
remained constant at 3%. For the question “Would factoring
still be considered a demanded product?” our respondents
show a confidence of 53% versus last year at 59%. Our most On the risk management front, responses to the questions in
pessimistic respondents on this topic are now at 8% negative, terms of their outlook for client and debtor risk in their markets
while in 2022, we had 3%. show a boost of confidence in relation to Client/Debtor risk,
having a positive view with a combined total of 36% (19% from
clients coupled with 17% from debtors) while in 2022 this total
Industry Development Demand Level Outlook was 32% (16% from clients coupled with 16% from debtors)
Outlook mirrored by a total negative view of 38% (19% from clients
coupled with 19% from debtors) while in 2022 this total was
3% 8% 39% (16% from clients coupled with 23% from debtors).
41% 39% ● Negative
● Neutral Client Risk Outlook Debtor Risk Outlook
● Positive
56% 53%
19% 19% 17% 19%
● Negative
● Neutral
The next two questions were dedicated to Turnover and ● Positive
Profitability Outlook. Pessimism for Turnover increased to 62% 64%
12% in 2023 (4% in 2022), while the 42% positive (51% in 2022)
view for Turnover level and paired with a 35% positive (38% We also looked at several variables impacting factoring.
in 2022) profitability we can conclude that confidence in the Almost each of the impediments compared to 2022
product is still strong but with a more pragmatic view shown by presented variations. AML/KYC maintained its 42% position
the increase in the neutral views, especially in parallel with the as an impediment to the industry (40% in 2022). Higher
small single-digit increase in factoring turnover of 2023 versus transactional costs are now viewed at 28% rather than 29% in
2022 (two digits growth). 2022. Credit ratings increased slightly from 34% in 2022 to 35%
in 2023. Also, liquidity showed that 24% see it now as a high
impediment rather than 22% in 2022. (Graph 1)

FCI Annual Review 2024 25

GIAR | 2023 Global Industry Activity Report

Graph 1: Potential Impediments to the Development of Factoring 2023 ● Low ● Medium ● High

Credit Ratings 20% 45% 35%

Low Fee Income 27% 54% 19%

High Transaction Costs 18% 54% 28%

Lack of Liquidity 35% 41% 24%

Capital Constraints 34% 41% 25%

Buyer Performance 22% 43% 35%

Low Country Credit Ratings 37% 38% 25%

Basel Requirements 29% 54% 17%

AML/KYC Requirements 24% 34% 42%

Moving forward, we can spot changes in members’ views Conclusion

relating to the shortfall of factoring in a negative way. 45% of
our respondents see a shortfall rather than 36% from 2022. With the fantastic 2022 year behind us, 2023 comes in with a
Trade protectionism fears maintained its level from 2022, moderate and toned-down picture, more focused on prudence.
enhanced by the war in the east part of Europe. While we keep Hope is still present in our respondents’ answers. Despite all
mentioning past experiences like the US-China trade war or the challenges, 2023 has also shown potential with moderate
Brexit finalisation that might have left some scars and lessons growth, confirming once again that factoring is still growing
learned with the war in the east part of Europe, made our and a viable solution, especially during challenging times. The
respondents placed this issue at 61% level vs 60% in 2022. question of resilience in factoring remains to be seen, especially
in 2024, a year that will add, on top of everything, an election
Shortfall of Factoring Could Protectionism year in Europe and the United States. Time will certainly tell.
to fund International widen any Trade Finance
Business? Gap even more? In conclusion, we would like to thank all country respondents
for their hard work in gathering this data on behalf of their
countries and sharing it with us, year after year. We could never
18% 28%
45% 61%
● Yes be able to do this without you! Thank you!
● No
● Don’t
11%
know
37%
Juscelino-Kubitschek Bridge spans Lake Paranoa, Brasilia, Federal District, Brazil.

26 FCI Annual Review 2024

FCI Expressed in Figures

For the calendar year 2023, the number of members who 16% Invoice Discounting, 19% Reverse, 5% Collection only and
contributed to the FCI Survey was close to 47% (50% in 2022), Non-Notification with 3%.
and their total volume added up to EUR 1,517 billion. Hence, all
data hereafter relates exclusively to these real figures. Grouped Export Factoring and Direct Export Invoice
Discounting show a decline from last year, accounting for 13%
Comparing the data with 2022 figures, we noticed in 2023 a of the total (16% in 2022). The Export Factoring volume related
continuation of the positive trends in Domestic Factoring, to the two-factor business remained the same as in 2022, with
while for International, we noticed a double-digit decline approximately 7% of the total, while Direct Export is 93%.
(around -12%). For Domestic Factoring, 2023 showed growth Invoice Discounting recorded a +45% YOY increase in 2023.
in almost all categories, with remarkable Reverse and Invoice
Discounting results. Non-recourse maintained a turnover level Import Factoring accounted for 2% of the total, where 55%
similar to that of the previous year. Direct Export showed a represents two-factor business.
double-digit decline. For International, shared turnover for
International Reverse, Invoice Discounting, and collection Reverse Factoring accounts for the remaining 1%.
services were the only figures that presented positive values.
The following chart shows the results of the contributions
Domestic Factoring share of the total volume had a 3-point received from the members and the estimates for 2023 for their
increase from last year and reached 84%, of which 14% countries. With the strengthening of the USD, the same picture
accounts for Recourse Factoring, 43% without Recourse, viewed in the USD currency shows a slightly better outcome.

Accumulative Turnover Figures for All FCI Members Compared to Worldwide Factoring Turnover in millions of EUR

2017 2018 2019 2020 2021 2022 2023 Variation

2022/2023

Invoice Discounting 303,272 266,606 263,236 189,095 192,244 119,309 204,240 71.2%
Recourse Factoring 231,270 245,583 191,167 143,882 138,914 169,747 180,598 6.4%
Non-Recourse Factoring 478,640 482,885 474,564 494,366 554,512 552,369 550,115 -0.4%
Collections 40,866 57,185 53,693 49,954 53,106 56,685 58,724 3.6%
Non-Notification Factoring 17,621 48,789 42,934 -12.0%
Reverse 50,010 89,482 139,358 76,305 151,344 171,238 240,963 40.7%
Islamic Factoring 0 81 145 147 25 -82.7%

Total Domestic Factoring FCI 1,104,058 1,141,741 1,122,019 953,682 1,107,887 1,118,285 1,277,599 14.2%

Export Factoring 292,408 211,195 216,721 158,990 139,332 188,672 142,844 -24.3%
Import Factoring 55,460 31,719 28,464 18,095 21,753 27,168 21,402 -21.2%
Export Invoice Discounting 106,104 59,569 47,467 33,717 49,574 39,615 57,536 45.2%
Reverse 4,497 7,638 6,075 6,446 6,185 15,322 17,891 16.8%

Total International Factoring FCI 458,469 310,120 298,727 217,249 216,844 270,777 239,673 -11.5%

Grand Total FCI 1,562,527 1,451,861 1,420,746 1,170,931 1,324,731 1,389,062 1,517,272 9.2%

World Domestic Factoring 2,078,758 2,244,214 2,375,406 2,206,000 2,496,438 2,956,642 3,094,945 4.7%
World International Factoring 519,540 522,852 541,699 520,728 597,268 702,562 696,509 -0.9%

World Total 2,598,298 2,767,067 2,917,105 2,726,728 3,093,706 3,659,204 3,791,455 3.6%

in millions of USD

World Total 3,117,437 3,172,165 3,266,866 3,353,875 3,503,623 3,917,178 4,188.420 6.9%

FCI Annual Review 2024 27

FCI Expressed in Figures

All contributions by continent to the FCI FCI Members Domestic Volume 2023 in millions of EUR
Members' domestic volume show Europe at the
top, with 58% (58% in 2022). In Europe, Non- 800,000 ● Islamic Factoring
Recourse volume accounts for 40% of the total 700,000 ● Reverse
(47% in 2022), Recourse volume 15% (17% in 600,000 ● Non-Notification
2022), whilst Invoice Discounting volume shows 500,000 Factoring
20% (10% in 2022) and Reverse volume at 19% 400,000 ● Collections
(17% in 2022). Asia Pacific has 35% (36% in 2022), 300,000 ● Non-Recourse
while the Americas have 6%, and Africa and the 200,000 Factoring
Middle East have a total of 1%, keeping the same 100,000 ● Recourse Factoring
ratio as it was in 2022, which fills the picture for 0 ● Invoice Discounting
domestic volume.

Africa

Asia-
Pacific

Europe

Middle
East

North
America

South
America
When breaking down the FCI Members FCI Members International Volume 2023 in millions of EUR
International Factoring (Export and Import)
volume by continent, Europe registered an 160,000 ● Reverse International
increase, accounting for 61% of the total (54% in 140,000 ● Import
2022). Asia Pacific shows a decline with 34% of 120,000 ● Direct Export Invoice
the total (42% in 2022). The Americas accounted 100,000 Discounting
for a slight increase, with one point from the 80,000 ● Export
previous year reaching 4%, whilst Africa and the 60,000
Middle East combined represented less than 1%, 40,000
maintaining their previous position from 2022. 20,000
0
Africa

Asia-
Pacific

Europe

Middle
East

North
America

South
America
When breaking down the volume of FCI Member Share of 2023 FCI Domestic Factoring Volume
Countries/Territories on Domestic Factoring
volume, we find the ‘Top Ten’ adding up to 90% of ● China 29% ● United States 4%
the total volume, with China in first position with ● Spain 18% ● Poland 3%
29%, followed by Spain (18%), Italy (11%), France ● Italy 11% ● Germany 3%
(9%), United Kingdom (7%), Japan and the United ● France 9% ● Greece 2%
States with 4% each, Poland and Germany with ● United Kingdom 7% ● Rest 10%
3% each and ending with Greece (2%). ● Japan 4%

When breaking down the volume of FCI Member Share of 2023 FCI International Factoring Volume
Countries/Territories on International Factoring
volume, we find the ‘Top Ten’ adding up to 88% ● Spain 19% ● Singapore 5%
of the total volume, having Spain in the first ● Italy 14% ● Hong Kong 5%
position (19%), followed by Italy (14%), Taiwan ● Taiwan 13% ● Poland 4%
(13%), Germany and China with 10% each, United ● Germany 10% ● United States 2%
Kingdom (7%), Singapore and Hong Kong with 5% ● China 10% ● Rest 11%
each, Poland (4%) and the United States (2%). ● United Kingdom 7%

The volume of the ‘Top Ten’ FCI Members’ Total Share of 2023 FCI Factoring Volume
Factoring volume by Country/Territory accounts
for 88% of the total, China leading the way with ● China 26% ● Germany 4%
26%, followed by Spain (18%), Italy (11%), France ● Spain 18% ● Poland 4%
(8%), United Kingdom (7%), Japan, Germany and ● Italy 11% ● United States 3%
Poland with 4% each, United States and Taiwan ● France 8% ● Taiwan 3%
with 3% each. ● United Kingdom 7% ● Rest 12%
● Japan 4%

28 FCI Annual Review 2024

 Factoring Turnover by Country/Territory in 2023
in millions of EUR ● EUF ● FCI estimate

Country/Territory Domestic (*) International(*) Total Companies(*) Total Factoring Volume

Africa
Botswana 28 9 37 19
Cameroon 300 – 300 2
Congo, Republic of the 30 – 30 1
Egypt 1,102 185 1,287 32
Kenya 5 1 6 4 Africa 1.25%
● Mauritius 250 75 325 6
● Morocco 2,200 150 2,350 8
Senegal 119 – 119 3
● South Africa 42,490 137 42,628 110
Tunisia 375 17 392 6
Uganda 8 – 8 2
Total Africa 46,907 575 47,482 193 Asia-Pacific 24.85%

Asia Pacific
Australia 54,319 11 54,330 6
● China 519,951 114,623 634,574 2,000
Hong Kong 10,000 25,920 35,920 9
India 16,378 1,000 17,378 11
Indonesia 321 137 458 60 Europe 67.40%
● Japan 59,000 1,622 60,622 5
Korea 16,387 9,217 25,604 21
Malaysia 4,387 72 4,459 25
Mongolia 44 – 44 2
New Zealand 35 – 35 1
Singapore 25,000 35,000 60,000 19
Sri Lanka – 200 200 1 Middle East 0.25%
Taiwan 11,000 32,000 43,000 20
● Thailand 4,300 10 4,310 10
Vietnam 70 1,074 1,144 8
Total Asia-Pacific 721,192 220,886 942,078 2,198

Europe
Armenia 75 20 95 5 North America 2.45%
● Austria 15,967 20,496 36,463 4
Azerbaijan 106 6 112 1
Belarus 455 240 695 14
● Belgium 135,734 – 135,734 5
Bosnia Herzegovina 69 – 69 4
● Bulgaria 4,235 2,650 6,885 8
● Croatia 1,230 185 1,415 10 South America 3.81%
● Cyprus 3,830 945 4,775 6
● Czech Republic 8,316 3,352 11,668 6
● Denmark 10,392 9,102 19,494 9
Estonia 3,869 31 3,900 11
Finland 25,000 3,000 28,000 5
● France 275,300 151,300 426,600 12
Georgia 180 2 182 4 * Some figures used in the
● Germany 275,865 108,579 384,444 180 table might be data from
● Greece 21,578 3,112 24,690 8 previous years where the
● Hungary 12,541 1,283 13,824 15 information received by the
Ireland 26,900 1,717 28,617 6 members lacked

FCI Annual Review 2024 29

 Factoring Turnover by Country/Territory in 2023

in millions of EUR ● EUF ● FCI estimate

Country/Territory Domestic (*) International(*) Total Companies(*)

● Italy 232,219 66,459 298,678 30
Kosovo 30 – 30 3
Latvia 457 345 802 8
● Lithuania 5,100 60 5,160 12
Luxembourg 339 – 339 1
Malta 282 414 696 3
Moldova – 9 9 3
● Netherlands 168,528 – 168,528 5
North Macedonia 15 23 38 5
● Norway 26,173 – 26,173 4
● Poland 87,048 16,441 103,489 24
● Portugal 38,495 5,698 44,193 14
● Romania 7,641 1,019 8,660 12
Russia 78,299 – 78,299 34
Serbia 1,900 200 2,100 22
Slovakia 1,680 1,234 2,914 6
● Slovenia 1,100 1,400 2,500 20
● Spain 233,005 37,388 270,393 20
Sweden 21,473 – 21,473 15
Switzerland 2,620 87 2,707 5
Turkey 24,444 2,206 26,650 59
Ukraine 592 – 592 16
● United Kingdom 340,087 23,094 363,181 46
Total Europe 2,093,169 462,097 2,555,266 680

Middle East
Israel 3,360 840 4,200 7
Lebanon 83 – 83 3
Oman 93 – 93 4
UAE 3,500 1,500 5,000 4
Total Middle East 7,036 2,340 9,376 18

North America
Canada 1,850 1,250 3,100 5
● USA 85,700 4,000 89,700 250
Total North America 87,550 5,250 92,800 255

South America
Argentina 2,350 10 2,360 7
Brazil 30,783 165 30,948 600
Chile 39,000 3,000 42,000 200
Colombia 7,960 350 8,310 14
Costa Rica 1,441 – 1,441 6
Dominican Republic 247 29 276 18
Guatemala 160 – 160 15
Honduras 75 5 80 10
● Mexico 34,200 1,300 35,500 21
Peru 22,675 486 23,161 7
Uruguay 200 17 217 2
Total South America 139,091 5,362 144,453 900

Grand Total 3,094,945 696,510 3,791,455 4,244

Jiaozhou Bay Bridge, Qingdao City, Shandong Province, China.

30 FCI Annual Review 2024

 Total Factoring Volume by Country/Territory in the Last 7 Years
in millions of EUR ● EUF ● FCI estimate

2017 2018 2019 2020 2021 2022 2023 Var 2022/2023

Africa
Botswana – – – 180 180 180 37 -79.6%
Cameroon – – – – – – 300 100.0%
Congo, Republic of the – – – – – – 30 100,0%
Egypt 418 517 589 604 1,153 1,181 1,287 9.0%
Kenya 215 – – – 6 6 6 0.0%
● Mauritius 208 227 230 203 250 144 325 125.7%
● Morocco 3,374 2,532 2,532 2,532 2,532 2,532 2,350 -7.2%
Senegal – – – – – – 119 100.0%
● South Africa 17,117 18,582 20,873 21,465 27,905 37,393 42,628 14.0%
Tunisia 339 316 338 258 311 378 392 3.7%
Uganda – – – – 8 8 8 0.0%
Total Africa 21,671 22,174 24,562 25,242 32,345 41,822 47,482 13.5%

Asia Pacific
Australia 47,658 54,330 54,330 54,330 54,330 54,330 54,330 0.0%
● China 405,537 411,573 403,504 433,162 469,575 576,885 634,574 10.0%
Hong Kong 46,945 53,500 48,150 45,743 44,000 45,000 35,920 -20.2%
India 4,269 4,532 5,089 3,562 8,600 15,771 17,378 10.2%
Indonesia 682 – 458 458 458 458 458 0.0%
● Japan 37,284 49,348 49,446 51,225 58,666 57,277 60,622 5.8%
Kazakhstan 106 – – – – – – 0.0%
Korea 13,094 25,645 26,927 25,604 25,604 25,604 25,604 0.0%
Malaysia 1,650 4,459 4,459 4,459 4,459 4,459 4,459 0.0%
Mongolia – – – – – 44 44 0.0%
New Zealand – – 35 35 35 35 35 0.0%
Singapore 44,000 44,000 39,600 29,034 29,034 44,000 60,000 36.4%
Sri Lanka 116 – 200 200 200 200 200 0.0%
● Taiwan 49,548 41,198 48,419 42,500 49,000 50,000 43,000 -14.0%
● Thailand 5,600 5,877 5,877 5,877 6,105 6,105 4,310 -29.4%
Vietnam 700 1.100 1,100 904 1,030 1,144 1,144 0.0%
Total Asia Pacific 657,189 695,562 687,594 697,093 751,096 881,312 942,078 6.9%

Europe
Armenia 120 135 150 160 160 164 95 -42.1%
● Austria 21,091 24,107 27,220 26,762 30,459 35,884 36,463 1.6%
Azerbaijan 65 – 112 112 112 112 112 0.0%
Belarus 250 380 570 610 754 636 695 9.3%
● Belgium 69,641 76,340 84,819 81,716 99,368 124,166 135,734 9.3%
Bosnia Herzegovina – – 91 50 69 69 69 0.0%
● Bulgaria 2,919 3,211 3,532 3,300 5,100 7,599 6,885 -9.4%
● Croatia 1,340 1,094 1,140 1,132 1,230 1,365 1,415 3.7%
● Cyprus 2,830 3,585 3,181 2,940 3,200 4,807 4,775 -0.7%
● Czech Republic 6,121 6,778 7,240 6,990 9,224 11,857 11,668 -1.6%
● Denmark 14,948 18,637 18,838 18,695 21,910 25,532 19,494 -23.6%
Estonia 2,495 3,600 3,900 3,900 3,900 3,900 3,900 0.0%
Finland 24,000 25,800 28,000 28,000 28,000 28,000 28,000 0.0%
● France 290,803 320,409 349,714 323,567 364,900 421,500 426,600 1.2%
Georgia 25 28 137 152 185 247 182 -26.3%
● Germany 232,431 244,300 275,491 275,000 309,400 372,923 384,444 3.1%
● Greece 13,151 14,635 15,045 14,430 17,656 23,507 24,690 5.0%
● Hungary 5,730 6,911 8,550 8,820 10,671 12,053 13,824 14.7%
Ireland 26,294 26,294 28,617 28,617 28,617 28,617 28,617 0.0%

FCI Annual Review 2024 31

 Total Factoring Volume by Country/Territory in the Last 7 Years

in millions of EUR ● EUF ● FCI estimate

2017 2018 2019 2020 2021 2022 2023 Var 2022/2023

● Italy 228,421 247,430 263,364 234,842 258,350 296,106 298,678 0.9%
Kosovo – – – 30 30 30 30 0.0%
Latvia 720 784 805 815 823 920 802 -12.8%
● Lithuania 3,000 3,660 3,400 2,700 3,300 5,500 5,160 -6.2%
Luxembourg 339 339 339 339 339 339 339 0.0%
Malta 350 554 696 696 696 696 696 0.0%
Moldova 3 4 5 5 3 5 9 80.0%
● Netherlands 89,713 98,368 112,148 113,758 131,940 163,663 168,528 3.0%
North Macedonia – – – 23 25 25 38 52.0%
● Norway 22,682 25,923 26,441 25,235 28,105 30,914 26,173 -15.3%
● Poland 44,300 56,474 66,141 62,864 78,950 98,201 103,489 5.4%
● Portugal 27,008 31,757 33,800 31,468 34,487 42,078 44,193 5.0%
● Romania 4,560 5,007 4,854 5,023 5,990 7,847 8,660 10.4%
Russia 33,792 43,840 45,125 42,302 68,684 82,600 78,299 -5.2%
Serbia 603 650 883 930 1,080 1,690 2,100 24.3%
Slovakia 1,646 2,521 2,032 1,604 2,263 2,914 2,914 0.0%
● Slovenia 1,200 1,400 2,000 1,750 2,000 2,190 2,500 14.2%
● Spain 146,292 166,391 185,559 182,264 199,364 257,636 270,393 5.0%
Sweden 20,094 19,822 20,625 20,625 21,473 21,473 21,473 0.0%
Switzerland 3,832 593 593 593 593 2,707 2,707 0.0%
Turkey 34,575 26,894 21,857 18,966 15,944 24,094 26,650 10.6%
Ukraine 295 295 258 258 258 592 592 0.0%
● United Kingdom 324,260 320,193 328,966 272,677 328,429 353,539 363,182 2.7%
Total Europe 1,701,939 1,829,143 1,976,239 1,844,721 2,118,041 2,498,697 2,555.266 2.3%

Middle East
Israel 3,295 2,665 2,734 3,748 4,000 4,200 4,200 0.0%
Lebanon 662 675 675 675 83 83 83 0.0%
Oman – – 93 93 93 93 93 0.0%
Qatar 62 – – – – – – 0.0%
UAE 4,000 5,500 6,435 5,000 5,000 5,000 5,000 0.0%
Total Middle East 8,019 8,840 9,937 9,516 9,176 9,376 9,376 0.0%

North America
Canada 5,392 2,280 2,985 2,448 2,700 3,100 3,100 0.0%
● USA 87,000 87,821 83,757 64,150 94,300 100,800 89,700 -11.0%
Total North America 92,392 90,101 86,742 66,598 97,000 103,900 92,800 -10.7%

South America
Argentina 2,282 3,064 4,133 2,662 3,502 4,114 2,360 -42.6%
Bolivia 44 – – – – – – 0.0%
Brazil 50,432 47,281 46,711 18,850 20,998 26,679 30,948 16.0%
Chile 22,756 26,500 33,600 27,000 29,400 41,000 42,000 2.4%
Colombia 7,655 7,142 7,667 5,525 6,241 8,260 8,310 0.6%
Costa Rica 231 – – 836 900 900 1,441 60.1%
Dominican Republic 302 337 253 276 276 276 0.0%
Guatemala 282 300 300 300 300 160 -46.7%
Honduras 27 67 75 52 52 80 80 0.0%
● Mexico 23,314 24,477 25,200 14,361 16,994 34,179 35,500 3.9%
Peru 10,105 12,023 13,905 13,657 7,270 8,194 23,161 182.7%
Uruguay 98 110 103 63 115 115 217 88.9%
Total South America 117,088 121,248 132,031 83,559 86,048 124,097 144,453 16.4%

Total World 2,598,298 2,767,068 2,917,105 2,726,728 3,093,706 3,659,204 3,791,455 3.6%

32 FCI Annual Review 2024

 Photography

cover:
– Jamsil railway bridge and Lotte World Tower, Seoul, South Korea
© Richard Sharrocks / Moment via Getty Images

page 2:
– The Margaret McDermott Bridge and the Margaret Hunt Hill Bridge,
Trinity River, Dallas, Texas, USA
© Nat Chittamai | 500 px via Getty Images

page 7:
– Night view of Seoul, South Korea
© T.H.Kang / Moment Open via Getty Images

page 11:
– Bandra Worli Sea Link, Mumbai, Maharashtra, India
© Puneet Vikram Singh, Nature and Concept photographer /
Moment via Getty Images

page 14:
– The Storms River Bridge, also known as the Paul Sauer Bridge,
Eastern Cape of South Africa
© Martin Harvey / Photodisc via Getty Images

page 16 | 17:
– Rainbow Bridge over Tokyo Bay and Daiba Island, Tokyo, Japan
© vladimir zakharov / Moment via Getty Images

page 21:
– Tolerance Bridge, Dubai Water Canal, Business Bay, Dubai,
United Arab Emirates
© Fraser Hall / The Image Bank via Getty Images

page 26:
– Juscelino-Kubitschek Bridge spans Lake Paranoa, Brasilia,
Federal District, Brazil
© Matthias Graben / imageBROKER via Getty Images

page 30:
– Jiaozhou Bay Bridge, Qingdao City, Shandong Province, China
© Cheunghyo / Moment via Getty Images

FCI Design by
Keizersgracht 559 Engelse Verdonk Ontwerpers, Almere, The Netherlands
1017 DR Amsterdam
The Netherlands Lithography by
Telephone +31 20 627 03 06 Straight Premedia B.V., Amsterdam, The Netherlands

E-mail: [email protected] Printing by

www.fci.nl MullerXXL Print & Sign B.V., Amsterdam, The Netherlands

Published in 2024 by FCI

Articles may be used freely

Please acknowledge source
FCI
Keizersgracht 559
1017 DR Amsterdam
The Netherlands
Telephone +31 20 627 03 06

E-mail: [email protected]
www.fci.nl

Published in 2024 by FCI

Articles may be used freely

Please acknowledge source