In a strategic push to empower African small and medium-sized enterprises (SMEs) engaged in global trade, China’s leading B2B cross-border payment platform, XTransfer, has joined forces with pan-African banking giant Ecobank Group.
The collaboration, formalized through a memorandum of understanding, aims to dismantle financial barriers hindering trade between African businesses and their international partners, particularly in China.
The partnership arrives as China-Africa trade hits unprecedented levels, reaching $282 billion in 2023. Despite a slight 1.4% uptick in Chinese exports to Africa ($160 billion) from January to November 2024, African exports to China surged by 6.6% to $107 billion in the same period. Yet African SMEs—often sidelined by traditional banking systems—continue to grapple with frozen accounts, exorbitant transaction fees, sluggish payment processing, and foreign exchange volatility.
XTransfer, renowned for facilitating seamless trade payments for Chinese exporters, will tap into Ecobank’s sprawling network spanning 35 African countries. The alliance will enable African SMEs to transact in local currencies while allowing Chinese businesses to collect payments in African currencies, bypassing costly dollar conversions. Ecobank’s existing infrastructure, including its China desk and representative office in Beijing, will integrate with XTransfer’s digital solutions to streamline remittances and slash processing times.
“This isn’t just about moving money—it’s about moving economies forward,” said XTransfer CEO Bill Deng, emphasizing the partnership’s potential to democratize financial access. Ecobank Group CEO Jeremy Awori echoed the sentiment, noting the deal aligns with the bank’s vision to “simplify payments and position African SMEs as contenders, not spectators, in global trade.”
The collaboration could prove transformative for sectors like agriculture and manufacturing, where African SMEs often lose margins to intermediaries and banking bottlenecks. By mitigating forex risks and reducing transaction costs, the partners aim to level the playing field for businesses long constrained by fragmented financial systems.
Industry analysts highlight the timing as critical. With the African Continental Free Trade Area (AfCFTA) gaining momentum, efficient cross-border payment solutions are seen as vital to unlocking intra-African trade, which currently lags at just 15% of the continent’s total commerce. However, challenges persist, including uneven digital adoption and regulatory disparities across African markets.
For now, the partnership signals a broader shift: as African economies increasingly pivot toward China and Asia, homegrown financial innovation—and strategic alliances—may finally give SMEs the tools to turn potential into profit.
