Ecobank Group, a leading private pan-African financial services group, and XTransfer, China’s leading B2B cross-border trade payment platform, have signed a Memorandum of Understanding (MOU) to roll out cross-border financial services to Africa’s small and medium-sized enterprises (SMEs) engaged in foreign trade.
The African Press Organisation (APO) Group, in a news report circulated on behalf of Ecobank Group, indicated that the partnership would enable XTransfer to leverage Ecobank’s extensive network across Africa, enabling its Chinese clients to collect funds in local African currencies while assisting African SMEs in making payments in their local currencies to tackle foreign exchange (FX) scarcity, exchange rate volatility and other related issues.
Commenting on the deal, Ecobank Group’s Chief Executive Officer, Jeremy Awori, enthused: “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”, the banker added.
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In his remarks, Founder and CEO of XTransfer, Bill Deng, said: “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”, Deng assured.
This partnership aligns with Ecobank’s goals of driving financial integration by facilitating seamless cross-border trade, which is the backbone of the continent’s economy growth.
By collaborating with XTransfer, Ecobank is strengthening its position as a key player in the global payments industry by reducing trade barriers, enabling African SMEs to thrive in international markets and contribute to the continent’s sustainable development.
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 US$282 billion. From January to November 2024, China’s exports to Africa totalled US$160 billion, a 1.4% increase from the previous year, while imports from Africa reached US$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.
