Stanbic Bank signs deal to ease trade between Kenyan importers and Chinese exportersJuly 17, 2019
NAIROBI, Kenya, Jul 17 – Kenyan importers will be able to source and validate quality goods from the most competitive suppliers in China following the launch of the Africa China Agent Proposition (ACAP) initiative.
This is after Stanbic Bank and Industrial Commercial Bank of China (ICBC) signed a deal to launch the initiative with Chinese Trade Agent Zhejiang International Trading Supply Chain (Guomao) to ease trade between African importers and Chinese exporters.
The initiative has been jointly designed by Standard Bank Group, which Stanbic Bank Kenya is a member of, and Industrial Commercial Bank of China (ICBC).
Standard Bank Group’s Head of Africa China Integration Manessah Alagbaoso, says the deal provides access to unlimited number of Chinese suppliers and eases the cash flow of importers by providing financial support.
The initiative also provides importers with insight and control of the entire importing and logistics process.
“The initiative also allows for negotiation of the best prices and trade conditions and arranging travel and supplier meetings in China,” he said.
Other services that will be offered under the deal include provision of quality guarantees and translators to facilitate trade negotiations and discussions; and financing of imports based on a letter of credit from Standard Bank and ICBC as required and handle shipping logistics.
Currently, African importers order from only a handful of trusted Chinese suppliers – limiting their negotiating power while stacking the terms of trade against them.
According to Alagbaoso, the alternative online ordering, places the burden of risk with regards to quality and delivery on the buyer, while travelling to China exposes them to hurdles such as language and cultural barriers when negotiating supplier agreements in China.
“The ACAP offering – underpinned by a letter of credit – will deepen trust in Africa-China trade relationships, guaranteeing African importers access to the best suppliers in China, the best payment terms and the best quality,” says Alagbaoso.
“If any of the terms of the letter of credit are not met, payment will not be made. As such, the offering will place African importers in a much stronger negotiating position when it comes to the price, quality and efficiency of importing Chinese goods,” he added.