XTransfer,  Ecobank partner to boost cross-border payments for African SMEs

In a groundbreaking development, XTransfer, a leading Chinese B2B cross-border trade payment platform, has entered into a Memorandum of Understanding (MOU) with Ecobank Group to introduce advanced financial services tailored for small and medium-sized enterprises (SMEs) in Africa engaged in international trade.

This partnership marks a significant step toward simplifying cross-border trade and addressing the financial challenges faced by African SMEs.

The collaboration will facilitate trade between China and Africa, as the two regions have witnessed a substantial increase in trade activities in recent years.

Bilateral trade reached an all-time high of US$282 billion in 2023, and in the first eleven months of 2024, China’s exports to Africa totaled US$160 billion, reflecting a 1.4% increase, while imports from Africa surged by 6.6%, reaching US$107 billion.

Despite the robust trade growth, African SMEs involved in foreign trade face persistent obstacles in cross-border payments and fund transfers.

Challenges such as the difficulty of opening accounts with traditional banks, the risk of funds being frozen, foreign exchange issues, delays in remittance, and high remittance costs have long hindered the growth of SMEs.

This partnership between XTransfer and Ecobank aims to mitigate these challenges by offering seamless payment solutions and enabling African SMEs to engage more effectively in global commerce.

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Under the agreement, XTransfer will leverage Ecobank’s extensive presence across Africa, allowing Chinese clients to collect funds in local African currencies and enabling African SMEs to make payments in their respective local currencies.

This eliminates the foreign exchange issues that many SMEs encounter, making cross-border transactions more efficient and cost-effective.

Bill Deng, the Founder and CEO of XTransfer, expressed his enthusiasm for the partnership, stating, “We are thrilled about our collaboration with Ecobank. This partnership is a pivotal milestone for XTransfer, significantly enhancing our global payment capabilities.

By tapping into Ecobank’s wide-reaching network across Africa, we can accelerate our business expansion in the region. Together, we aim to drive innovation and improve financial access for African SMEs, making financial services more efficient and accessible.”

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Jeremy Awori, CEO of Ecobank Group, also shared his excitement, saying, “We are proud to partner with XTransfer in advancing cross-border payment solutions between Africa and China.

This collaboration builds on our ongoing efforts, which include a representative office in China and a dedicated China desk. By integrating XTransfer’s solutions with our pan-African payment platform, we aim to simplify payments, lower transaction costs, and empower African businesses to thrive in global trade.”

The partnership will not only streamline trade between Chinese and African SMEs but also enhance foreign trade transactions between African companies and their global partners.

By reducing the costs associated with global trade, the collaboration will help bolster the competitiveness of African SMEs in the global marketplace, opening new avenues for growth and success in international trade.