The Rules of Origin (RoO) within the African Continental Free Trade Area (AfCFTA) framework are crucial for safeguarding member countries against external exploitation and fostering regional integration. Serving as "passports" for goods and services, RoO ensure that products originate within AfCFTA states, facilitating duty-free circulation. RoO must align with the growth strategies of Small and Medium Enterprises (SMEs) to enable their participation in regional markets and value chains. The cotton, textile, and apparel industry emerges as a pivotal sector for accelerating SME growth and the expansion of factoring practices within AfCFTA markets. By leveraging RoO, SMEs can gain preferential access to regional markets, stimulating investment and facilitating the development of regional value chains. Moreover, RoO implementation can enhance intra-African trade, offering new opportunities for SMEs across diverse sectors. This Policy Brief delves into the fundamental parameters of AfCFTA RoO, examining their potential to benefit SMEs and foster the growth of the factoring industry. Through a case study of the cotton, textile, and apparel industry, the analysis explores how synergistic linkages between SMEs and factoring can unlock mutual benefits in regional supply chains.