XTransfer and Ecobank partner to strengthen African SME trade.
X Transfer, a cross-border trade payment platform, and Ecobank Group, a pan-African financial services provider, have signed a Memorandum of Understanding (MOU) to roll out comprehensive cross-border financial services to Africa’s small and medium-sized enterprises (SMEs) engaged in foreign trade.
The collaboration will facilitate trade between China and African countries. In recent years, China and Africa have continued to deepen trade cooperation, with the scale of imports and exports rising rapidly. In 2023, bilateral trade reached a record $282 billion. From January to November 2024, China’s exports to Africa totalled $160 billion, a 1.4% increase from the previous year, while imports from Africa reached $107 billion, marking a substantial rise of 6.6%.
Despite this growth, African SMEs engaged in foreign trade face numerous challenges related to cross-border payments and fund collections. These challenges include difficulties in opening accounts with traditional banks, a high risk of funds being frozen, difficulties in foreign exchange and related losses, lengthy remittance times and high remittance costs.
Source: THEASIANBANKER
