XTransfer, China’s leading B2B cross-border trade payment platform, has entered into a partnership with Ecobank Group, a private pan-African financial services provider. The two organisations have signed a Memorandum of Understanding (MOU) to provide cross-border financial services to small and medium-sized enterprises (SMEs) engaged in foreign trade across Africa. The agreement is expected to facilitate trade between China and African countries.
Growth in China-Africa trade
China and Africa have continued to strengthen trade relations, with bilateral trade reaching US$282 billion in 2023. Between January and November 2024, China exported goods worth US$160 billion to Africa, reflecting a 1.4% increase from the previous year. During the same period, Africa’s exports to China amounted to US$107 billion, marking a 6.6% rise.
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Despite this growth, African SMEs engaged in international trade face challenges in processing cross-border payments and collecting funds. These issues include difficulties in opening accounts with traditional banks, risks of funds being frozen, foreign exchange complications, high remittance costs, and lengthy transaction times.
Objectives of the partnership
The collaboration between XTransfer and Ecobank aims to address these challenges. XTransfer will utilise Ecobank’s presence across Africa to enable its Chinese clients to collect funds in local African currencies. At the same time, African SMEs will benefit from a streamlined process for making payments in their local currencies, mitigating foreign exchange risks.
Bill Deng, Founder and CEO of XTransfer, highlighted the significance of the partnership, stating, “We are excited about the partnership with Ecobank. This collaboration represents a significant milestone for XTransfer and greatly enhances our global payment capabilities. Leveraging Ecobank’s extensive payment network in Africa will accelerate our business expansion in the region. We are looking forward to the synergies and opportunities this partnership will create. Together, we will drive innovation and improve the financial landscape, making financial services more efficient and accessible for African SMEs.”
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Jeremy Awori, CEO of Ecobank Group, emphasised the strategic benefits of the partnership. He said, “We are proud to partner with XTransfer to advance seamless cross-border payment solutions between Africa and China. This partnership builds on our established strategy, which includes a representative office in China and a dedicated China desk. By integrating XTransfer’s cutting-edge solutions with our pan-African payment platform, we simplify payments, reduce transaction costs, and enable African businesses to thrive in global trade.”
Impact on SMEs and international trade
The agreement will facilitate smoother trade between SMEs in China and African countries, reducing the complexities associated with foreign trade transactions. It will also benefit African businesses in their dealings with global partners, ensuring a more efficient process for handling payments.
This initiative supports Ecobank’s broader objective of financial integration across Africa. By easing cross-border transactions, the bank aims to contribute to the continent’s economic growth. Through this partnership, Ecobank is reinforcing its role in global payments by reducing trade barriers and enabling SMEs to participate effectively in international trade.
