WorldThe Ecobank Group, a leading pan-African financial institution, has partnered with XTransfer, a prominent Chinese cross-border trade payment platform. Their newly signed memorandum of understanding (MoU) aims to empower Africa’s small and medium-sized enterprises (SMEs) by providing them with robust cross-border financial services.
This collaboration seeks to address the challenges faced by African SMEs engaged in international trade, notably those related to cross-border payments. Despite the impressive growth in trade, with bilateral exchange between China and Africa reaching a record US$282 billion in 2023, the journey is fraught with hurdles. From account opening difficulties with traditional banks to risks of frozen funds, currency exchange complications, lengthy and costly remittance processes, African SMEs have much to navigate.
The partnership promises to mitigate these issues by streamlining foreign trade transactions and enhancing payment solutions. Leveraging Ecobank’s expansive network across Africa, XTransfer will enable its Chinese clients to handle transactions in local African currencies. Simultaneously, African SMEs will be able to make payments in their native currencies, effectively bypassing the common foreign exchange obstacles.
Jeremy Awori, CEO of Ecobank Group, emphasizes the strategic alignment, stating, “By integrating XTransfer’s advanced solutions with our pan-African payment platform, we simplify payments, reduce transaction costs, and empower African businesses to succeed in global markets.”
This partnership not only facilitates smoother trade between China and Africa but also aims to elevate the global competitiveness of African SMEs, fostering a more integrated and prosperous economic relationship between the continents.
