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The legal implications of factoring as a trade finance mechanism for small and medium sized enterprises in Botswana
Mini Dissertation (LLM (International Trade and Investment Law in Africa))--University of Pretoria, 2025.
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| Format: | Thesis |
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University of Pretoria
2025
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| _version_ | 1867613510021677056 |
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| access_status_str | Open Access |
| author2 | Basimanyane, Dorcas K. |
| author_browse | Basimanyane, Dorcas K. |
| author_facet | Basimanyane, Dorcas K. |
| collection | Thesis |
| dc_rights_str_mv | © 2024 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Mini Dissertation (LLM (International Trade and Investment Law in Africa))--University of Pretoria, 2025. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/106970 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:37:17.367Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/106970 The legal implications of factoring as a trade finance mechanism for small and medium sized enterprises in Botswana Basimanyane, Dorcas K. ramaphanebk@gmail.com Ramaphane , Bryan Kutlo UCTD Sustainable Development Goals (SDGs) Trade Finance Law SME's in Botswana Receivables Factoring Mini Dissertation (LLM (International Trade and Investment Law in Africa))--University of Pretoria, 2025. Small and medium enterprises (SMEs) are central to Botswana’s private sector, employing over 30% of the workforce and contributing up to 20% of GDP. Despite their role in driving innovation, diversification, and inclusive growth, SMEs remain financially constrained, with more than half lacking access to credit due to high collateral requirements and prohibitive interest rates. This thesis examines factoring as an alternative trade finance mechanism to bridge this gap and evaluates the adequacy of Botswana’s legal and institutional framework in supporting SME growth.Factoring the sale of receivables to a financial institution in exchange for immediate liquidity eases cash flow constraints and transfers credit risk. Globally, factoring is widely used, particularly in Europe, yet it remains underutilised in Botswana. The study identifies lack of awareness, weak legal frameworks, and limited institutional capacity as key barriers.The study employs a doctrinal approach to analyse statutes, treaties, conventions, and model laws, complemented by secondary sources including books, journal articles, and reports. It focuses on Botswana’s Non Bank Financial Institutions Regulatory Authority (NBFIRA) Act, Companies Act, and Value Added Tax Act to assess whether they provide adequate legal certainty for factoring transactions. Findings reveal that factoring is only briefly mentioned in the NBFIRA Act, without definition or substantive provisions on assignment of receivables, debtor obligations, insolvency, or priority of claims. This ambiguity inhibits SME access to factoring and stifles industry growth.Comparative insights are drawn from international frameworks including the UNIDROIT and Afreximbank Model Laws and from countries such as Cameroon and Egypt, which have adopted dedicated factoring legislation. These examples demonstrate the benefits of clear legal frameworks and provide lessons for Botswana.The thesis concludes that robust legal and institutional reforms are essential to unlock the potential of factoring, enhance SME financing, and support inclusive economic growth, innovation, and a more resilient financial ecosystem in Botswana Centre for Human Rights LLM (International Trade and Investment Law in Africa) Unrestricted Faculty of Laws SDG-08: Decent work and economic growth 2025-11-28T09:43:25Z 2025-11-28T09:43:25Z 2025-12-10 2025-09-30 Mini Dissertation * D2025 http://hdl.handle.net/2263/106970 en © 2024 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Sustainable Development Goals (SDGs) Trade Finance Law SME's in Botswana Receivables Factoring The legal implications of factoring as a trade finance mechanism for small and medium sized enterprises in Botswana |
| title | The legal implications of factoring as a trade finance mechanism for small and medium sized enterprises in Botswana |
| title_full | The legal implications of factoring as a trade finance mechanism for small and medium sized enterprises in Botswana |
| title_fullStr | The legal implications of factoring as a trade finance mechanism for small and medium sized enterprises in Botswana |
| title_full_unstemmed | The legal implications of factoring as a trade finance mechanism for small and medium sized enterprises in Botswana |
| title_short | The legal implications of factoring as a trade finance mechanism for small and medium sized enterprises in Botswana |
| title_sort | legal implications of factoring as a trade finance mechanism for small and medium sized enterprises in botswana |
| topic | UCTD Sustainable Development Goals (SDGs) Trade Finance Law SME's in Botswana Receivables Factoring |
| url | http://hdl.handle.net/2263/106970 |