The African Continental Free Trade Area (AfCFTA) heralds a new era of economic integration across Africa, promising substantial benefits for Small and Medium Enterprises (SMEs). With 44 million SMEs employing 80% of the continent's workforce, their role in the AfCFTA's success is paramount. This policy brief explores the potential of factoring as a vital financing tool for SMEs in navigating the AfCFTA landscape. By examining the AfCFTA's progress and key initiatives like the Guided Trade Initiative and the SME Financing Facility, alongside the challenges SMEs face, it underscores the importance of financial inclusion for sustainable growth. Moreover, it highlights the critical role of factoring in providing SMEs with the liquidity and flexibility needed to seize opportunities under the AfCFTA, thereby contributing to regional trade expansion. Additionally, the brief explores the nexus between factoring and Africa's private equity and venture capital industry, presenting avenues for collaboration and investment. It concludes by proposing policy considerations focused on regulatory frameworks, capacity-building efforts, financing mechanisms, and data infrastructure to optimize SME participation and foster economic transformation within the AfCFTA framework.