Banking
Stanbic IBTC Unveils ACAP to Assist Nigerian Importers
Stanbic IBTC Bank has launched an Africa-China Agent Proposition (ACAP) which aims to assist Nigerian 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, which is expected to connect African importers and Chinese exporters and open China to Africa, was officially launched in Nigeria on Tuesday 21 May, 2019, and will also be launched in Ghana and South Africa with other markets in Standard Bank’s African footprint to follow before the end of 2019.
Currently, Nigerian importers order from only a handful of 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 are 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. Language and cultural barriers are also a challenge for African importers when traveling and negotiating supplier agreements in China.
In response to these challenges, and in light of the vast opportunity that China presents as a trading partner, Standard Bank, the biggest bank in Africa, has leveraged its partnership with the Industrial and Commercial Bank of China (ICBC), the biggest bank in the world, to connect African importers with a dedicated trade agent 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,” said Dr. Manessah Alagbaoso, Head, Africa China Integration, Standard Bank. 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,” stated Dr. Alagbaoso. At the same time, “Chinese suppliers can be confident that once the terms of the letter of credit have been met, payment will be made in full and on time – guaranteed by Stanbic IBTC Bank or Standard Bank and ICBC,” added Dr. Alagbaoso.
In his remarks, Chief Executive, Stanbic IBTC Bank PLC, Dr. Demola Sogunle, reaffirmed the bank’s objective of constantly exploring opportunities of adding significant value to the businesses of its customers.
“Stanbic IBTC has established market leadership in several financial services segments, and our ultimate goal is to continually leverage on our connections, knowledge and experience in delivering impeccable service and value that would similarly make our customers not just get ahead but emerge leaders in their respective business segments and ACAP is another of such enablers”, said Sogunle.
Zhejiang International Trading Supply Chain Co. Ltd (Guomao) is the first Chinese Trade Agent nominated by ICBC to partner with Standard Bank to assist African importers trade seamlessly with China. “Guomao currently has almost 10 000 suppliers that meet the import needs of our clients,” says Dr. Alagbaoso. Where the need of a client falls outside of the supplier base that Guomao currently has, they will source new suppliers for that need after going through a process of new supplier validation and verification.
Guomao will assist Nigerian importers with services such as source the right suppliers, negotiate the best prices and trade conditions, arrange for African importers to travel to China and meet with a broad range of suppliers, provide translators to facilitate trade negotiations and discussions and source and validate the quality of goods. Other functions the agent would offer are to provide quality guarantees on goods from those Chinese suppliers recommended by the trade agent, ensuring that quality meets the expectations of African importers, rectify any quality issues on behalf of the African importer, finance imports based on a letter of credit from Standard Bank and ICBC as required and handle shipping logistics.
With over 20 years’ experience in foreign trade procurement services, Guomao provides a one-stop foreign trade supply chain, supply chain finance, and cross-border e-commerce supply chain service, “able to help Standard Bank’s clients navigate China’s foreign trade supply chain and trade seamlessly,” he added. In time, Standard bank’s ACAP offering will include other Chinese trade agents in other key international trade hubs of China, deepening access to China’s supplier universe.
Importantly, the ACAP offering will ease the cash flow of African importers. “Since Chinese suppliers will be secure in their possession of an ICBC-underwritten letter of credit, African importers will be able to receive goods before payment is made,” said Dr. Alagbaoso. This will allow African importers to keep cash in the business for growth.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
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