XTransfer, the world’s leading B2B cross-border trade payment platform, and Ecobank Group, Africa’s top pan-African financial services provider, have signed a landmark Memorandum of Understanding (MOU) to enhance cross-border financial services for African small and medium-sized enterprises (SMEs) engaged in international trade. This strategic collaboration aims to streamline trade transactions between China and Africa, addressing long-standing payment challenges faced by African SMEs.
Strengthening Africa-China Trade
The partnership comes at a time when trade between China and Africa is reaching new heights. In 2023, bilateral trade soared to a record US$282 billion. From January to November 2024, China’s exports to Africa reached US$160 billion, a 1.4% increase from the previous year, while imports from Africa surged to US$107 billion, marking a 6.6% growth. Despite this expansion, African SMEs have struggled with cross-border payment inefficiencies, high remittance costs, and foreign exchange risks.
Revolutionizing Cross-Border Payments
Through this partnership, XTransfer will leverage Ecobank’s vast African banking network, enabling Chinese traders to collect funds in local African currencies. In turn, African SMEs will benefit from simplified payment processes, allowing them to send payments in their local currencies without incurring high foreign exchange losses. This will significantly improve financial accessibility, reduce trade costs, and foster greater economic integration.
Leadership Perspectives
Bill Deng, Founder and CEO of XTransfer, emphasized the transformative impact of the collaboration:
“This partnership marks a major milestone for XTransfer, enhancing our global payment capabilities. By leveraging Ecobank’s extensive network in Africa, we can accelerate our business expansion and provide seamless financial services to African SMEs. Together, we will drive innovation and improve financial inclusion for businesses across the continent.”
Jeremy Awori, CEO of Ecobank Group, highlighted the strategic alignment of the collaboration:
“We are excited to join forces with XTransfer to enable frictionless cross-border payments between Africa and China. This partnership strengthens our commitment to financial integration and positions Ecobank as a leader in facilitating trade for African businesses. By integrating XTransfer’s technology with our pan-African payment platform, we are simplifying transactions, reducing costs, and empowering African SMEs to thrive in global trade.”
Boosting Africa’s Global Competitiveness
Beyond strengthening Africa-China trade, the partnership will also streamline international transactions for African companies, ultimately enhancing their global competitiveness. By breaking down financial barriers, this collaboration supports Ecobank’s broader mission of driving economic growth across the continent through seamless trade solutions.
As Africa’s trade landscape evolves, the XTransfer-Ecobank alliance sets a new standard for financial accessibility, ensuring that African SMEs can fully participate in the global economy.
