Stanbic IBTC Bank has launched an Africa-China Agent Proposition (ACAP), which aims to assist importers source and validate quality goods, safely and efficiently, from the most competitive suppliers in China.
The ACAP offering is expected to revolutionise African importers’ view of China’s supplier universe. It will also ease the cash flow of African importers by providing access to financing while empowering importers with sight and control of the entire importing and logistics process.
The offering, expected to connect African importers and Chinese exporters and open China to Africa, was launched in Nigeria on May 21.
It will also be launched in Ghana and South Africa with other markets in Standard Bank’s African footprint to follow before the end of the year.
Importers order from only some trusted Chinese suppliers. This limits the negotiating power of African importers while stacking the terms of trade against them. While ordering online provides access to a wider range of suppliers, online imports cannot guarantee the quality of goods. In most cases too, advance payments for goods is required. This is often demanded in cash, without reciprocal guarantees of delivery or quality. This means that Nigerian importers often carry a disproportionate burden of risk in most transactions.