In a landmark move, Kenya and the European Union inked a historic trade deal aimed at fostering economic collaboration between the two regions. The Economic Partnership Agreement, signed in Nairobi, signifies a strategic effort by Brussels to strengthen ties with African nations. Boost for Kenyan Exports: Duty-Free Access to EU MarketsThe agreement grants Kenya duty-free and quota-free access to the EU, its largest export market. Simultaneously, European goods will experience progressive tariff reductions, enhancing trade relations and market accessibility. A Pioneering Pact: EU's First Comprehensive Trade Deal with Africa Since 2016This marks the EU's first extensive trade agreement with an African nation since 2016. The development follows significant investments by China in Africa, particularly in expansive infrastructure projects. Inaugurating a Transformative PartnershipDuring the ceremony attended by European Commission Chief Ursula von der Leyen, Kenyan President William Ruto hailed the agreement as a historic partnership for transformative change. Ruto emphasized the core objective of the deal: injecting tangible benefits into the lives of ordinary citizens. EU's Perspective: A Win-Win Situation with Broader ImplicationsVon der Leyen echoed Ruto's sentiments, stating that the partnership represents a win-win situation for both parties. Encouraging other East African nations to join, she emphasized the need for concerted efforts in implementing the agreement. Ratification Process: Hurdles Before Full ImplementationBefore the agreement becomes enforceable, it necessitates ratification by both the Kenyan and European parliaments. This critical step underscores the commitment required from both sides. Unprecedented Economic Partnership: EU's Praise for AmbitioThe European Union lauded the deal as the "most ambitious economic partnership" with a developing country. Beyond trade, the agreement encompasses commitments to sustainable development, including labor rights and environmental protection.
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United Bank for Africa Plc has got a $150m trade finance facility from the African Export-Import Bank, to cushion the effect of the Ukraine war on customers.
In a statement, UBA noted that the facility formed part of Afreximbank’s Ukraine Crisis Adjustment Trade Financing Programme for Africa. It stated that the signing ceremony for the trade finance had been concluded by both institutions on the sidelines of the ongoing Intra-African Trade Fair, organized by Afreximbank in Cairo, Egypt on Saturday. It stated, “The terms of the agreement state that the facility will be utilised to finance trade and trade-related transactions in support of UBA’s clients. “In addition, the facility will aid in increased financing of trade businesses in various sectors of the Nigerian economy, thereby, mitigating the adverse effects of the Russia-Ukraine crisis. “ Yodaplus DocuTrade, in a collaborative endeavor with its ecosystem partner XDC Trade Network, has successfully executed a pioneering transaction by converting traditional paper Bills of Lading (BL) to electronic BL (eBL). This groundbreaking transaction demonstrates DocuTrade's prowess in digitizing trade documents, thereby also facilitating capital provisioning against the fractionalized eBL for a shipment duration of 7 days.
In this pilot, the shipper tokenized the eBL and fractionalized it, enabling capital provisioning for the shipment duration. This innovative approach, powered by DocuTrade, provided TradeFlow Capital, the shipper, with liquidity as soon as the shipment sailed, giving them a cash flow of 7 days (transit time). The ease of transaction was significantly enhanced as the trade documents were digitally created, making verification and transfer a seamless process. The commodity shipped was COPPER MILBERRY SCRAP for green recycling, with the transaction value pegged at USD 150K. Blue Yonder, a supply chain solutions provider, has signed an agreement to acquire Doddle, a first- and last-mile technology business. The deal will allow Blue Yonder to expand its suite of supply chain management and commerce offerings, incorporating final mile, returns management and reverse logistics solutions, the company said in a Thursday (Oct. 12). “The proliferation of eCommerce — and, therefore, returns — has placed increased pressure on carriers, muddied the waters of inventory management and created frustrations for shoppers,” Blue Yonder CEO Duncan Angove said in the release. “Doddle’s capabilities unlock a differentiated, superior customer experience and will help us to further our mission to transform the supply chain.” With Doddle’s capabilities, Blue Yonder aims to provide retailers and logistics service providers with a simplified experience for their customers, as well as enhanced growth potential to strengthen their businesses and build more sustainable supply chains, according to the release.
Trade Ledger is now accepting applications from banks to join the beta program for its artificial intelligence-enabled Working Capital Copilot solution. This solution helps banks access the $120 trillion embedded lending market for working capital finance, the company said in a Tuesday (Oct. 10) press release. Built on Trade Ledger’s data platform and deployed by Accenture, the beta program for Copilot provides banks with a generative artificial intelligence (AI) interface for embedded complex business finance, according to the release. The program is now open for banks interested in expanding their small and medium-sized business (SMB) lending portfolio. During the beta program, only a select number of banks will have early access to Copilot, the release said. Other Trade Ledger customers will have to wait until 2025 when the solution becomes generally available.
Bank of America advances digital transformation in trade finance with CashPro Supply Chain Solutions9/20/2023 Bank of America is embarking on a multi-year initiative to digitise trade finance through its new platform, CashPro Supply Chain Solutions. Aimed at optimising working capital and streamlining processes, the platform is part of CashPro, a banking system already utilised by over 40,000 businesses for treasury and trade operations. The first module, Open Account Automation, significantly reduces invoice approval times, marking a shift from days or weeks to mere minutes. This development addresses the industry’s reliance on manual, paper-based systems, offering a more efficient and transparent experience for all supply chain participants. Geoff Brady, head of Global Trade and Supply Chain Finance in Global Transaction Services (GTS) at Bank of America, said, “Trade finance is still a paper-heavy industry despite advances in technology, due in large part to the dependency on traditional manual processes”. “Eliminating that dependency was central to the design of CashPro Supply Chain Solutions, through which we’re introducing digitisation on behalf of network participants.”
Open Account Automation absorbs and collates data that exists within the supply chain ecosystem. Its goal is to improve the overall participant experience by delivering greater visibility, speed, and automation and allowing quicker decision-making. Truist Partners with Standard Chartered to Strengthen Trade Finance Capabilities in Emerging Markets9/20/2023 Through this strategic partnership, Truist Bank and Standard Chartered aim to create a seamless and efficient business environment for importers and exporters in the U.S. Standard Chartered will provide centralized processing, analytics and tracking services by leveraging the Bank’s unique network, local expertise, infrastructure, and technology. Truist’s corporate and commercial clients will benefit from Standard Chartered’s ability to fulfill their trade finance needs in emerging markets in Asia, Africa and the Middle East. Key Highlights of Trade Finance Services Partnership Are:Export and Import Letters of Credit: Truist will gain access to Standard Chartered’s footprint and ability to monitor transactions in real time for the entire value chain of documentary trade. In markets where Standard Chartered has a presence, Truist clients that want to purchase or sell goods and services will be able to confirm, advise, or discount letters of credit through the Bank. Standby Letters of Credit (SBLC): Truist clients can execute performance and commercial contracts with counterparts in markets that require local knowledge and expertise in addition to local SBLC delivery capabilities. Standard Chartered’s unique solution will allow Truist to process and issue SBLCs end-to-end using the Bank’s network to improve turnaround times and provide transparency on cost. “We are proud to have a strong network across the world’s most dynamic emerging economies and regions, which have the U.S. as its major trade partner. This presents immense opportunities for companies looking to expand their reach and tap into these new markets,” said Chris Burtch, Head of Financial Institution Sales at Standard Chartered Americas. “We are thrilled to be partnering with Truist and facilitate its clients’ cross-border trade finance needs across our footprint. With our expertise in navigating the complex landscape of cross-border trade, we are confident that we can support Truist clients, help them achieve their business objectives and unlock new opportunities for growth.” “Many of Truist’s corporate and commercial clients operate in the global economy and require solutions that allow them to complete transactions effectively across borders and throughout the supply chain,” said Chris Ward, Head of Wholesale Payments at Truist. “This partnership will allow our clients to more efficiently achieve their goals, scale their business, invest in their teams and build their communities.” About Truist Truist Financial Corporation (NYSE: TFC) is a purpose-driven financial services company committed to inspiring and building better lives and communities. Truist has leading market share in many high-growth markets in the country and offers a wide range of products and services through our retail and small business banking, commercial banking, corporate and investment banking, insurance, wealth management, and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top 10 U.S. commercial bank with total assets of $555 billion as of June 30, 2023. Truist Bank, Member FDIC. Learn more at Truist.com.
The UK Business Climate Hub represents a joint effort between the government, the business community, and industry associations. This hub will serve as the UK’s counterpart to the SME Climate Hub, a worldwide initiative launched in 2020 to motivate SMEs to act on climate change. A study released the previous year by Sage and the International Chamber of Commerce (ICC) indicated that SMEs are responsible for 44% of the UK’s non-domestic greenhouse gas (GHG) emissions. However, even with the aspiration to adopt greener practices, 90% felt hindered by challenges, from financial constraints to the struggle of identifying appropriate solutions. Emphasis on economic advantagesThis research also highlighted that the primary perceived advantage of adopting greener practices was cost reduction. The UK Business Climate Hub’s communication emphasizes assisting SMEs in decreasing energy consumption, thereby saving money, especially when many are grappling with inflation and increased business expenses, partly due to significant energy price hikes. In introducing the new platform, Graham Stuart, the minister of state for energy security and net zero, remarked: “More businesses are recognising the business benefits of reaching net zero and we’re determined to empower them to do so. The new UK Business Climate Hub is a one-stop-shop for businesses to find practical advice to reduce their carbon footprint and save on their energy bills.” This new platform provides actionable insights and recommendations in eight domains, from building and residential energy consumption to electric transportation, supply chain considerations, and product labeling and certification.
Absa CIB is positioning itself at the forefront of digital developments by being a part of Contour’s digital trade finance network. Many of Africa’s trade transactions are manual and paper-based, which slows down trade growth and creates another layer of complexity and costs. Absa CIB’s clients will now have access to Contour’s digital Letter of Credit (LC), which reduces the process of presenting documents from an average of 5-10 days to under 24 hours. Digital developments are a big part of addressing challenges and creating access to new markets. In Africa, digitisation is critical to the success of the African Continental Free Trade Area (AfCFTA), a flagship project that aims to boost intraAfrica trade by 52.3 percent and expand the size of the continent’s economy to US$29 trillion by 2050. HSBC has partnered with Dowsure Technologies, a China-based cross-border e-commerce API platform, to facilitate the flow of trade finance to online suppliers by leveraging transaction data instead of collateral or financial documents. Launched in 2016, Shenzhen-based Dowsure – an Amazon Seller Lending Programme partner – has built a proprietary assessment model for online marketplace store owners that uses information such as inventory, sales and refund records. By connecting this data to financial institutions, Dowsure enables cross-border merchants to access credit that they might otherwise struggle to obtain. Under the terms of the partnership, Dowsure will provide a streamlined credit assessment process for Amazon merchants seeking to apply for trade finance from HSBC. In addition, the bank’s venture capital arm, HSBC Ventures, has made a strategic investment into the company. The size of the investment was not disclosed. “HSBC’s enhanced support for small and medium-sized e-commerce enterprises through the investment in Dowsure is a positive signal for the entire cross-border e-commerce industry,” says Byron Pei, Dowsure’s founder. “By combining our technological capabilities and data advantages with HSBC’s financial expertise, we are able to provide a comprehensive, convenient and efficient product offer to a wide range of e-commerce sellers. We look forward to leveraging this collaboration to capture more opportunities in future global expansion, especially for those businesses based in the Greater Bay Area.”
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