The Citizen Entrepreneurial Development Agency (CEDA) has signed a Memorandum of Understanding (MoU) with Stanbic Bank to facilitate the seamless importation of goods and services from China, India and South Africa by CEDA-funded clients.
Through the partnership, CEDA clients will be able to source inputs, raw materials and machinery from China using Stanbic Bank’s existing relations with traders throughout the world.
Stanbic Bank is a member of the Standard Bank Group, which is co-owned by the Industrial and Commercial Bank of China (ICBC).
This partnership has provided Chinese and African traders with comprehensive financial services, also tapping into Standard Bank’s long standing history and regional influence in more than 20 African countries.
Speaking at the signing on Wednesday, Stanbic chief executive officer (CEO), Samuel Minta said his bank has an all-process banking product that enables the matching of buyers from Africa with suppliers or manufacturers in China.
“The product is facilitated through the Africa China Agent Proposition, which provides buyers from Africa with exclusive access to accredited trade agents in China,” he said.
CEDA CEO, Thabo Thamane for his part said the partnership will ensure
“In the past, we have had very unpleasant experiences where CEDA-funded projects struggled with language barriers, non-delivery or poor quality goods from suppliers,” Thamane said.
Thamane added the CEDA-Stanbic Bank relationship comes at a time when the agency has just launched its revised guidelines, which require it to take security over assets financed for special projects sectors like agriculture, mining, construction, energy, technology and the creative industry. In that regard, added Thamane, it is critical for assets purchased to be delivered in the right specifications, quality and quantity to minimise CEDA’s exposure in case of default.
The partnership further opens opportunities for the two financial institutions to conduct joint seminars for Small, Medium and Micro Enterprises focusing on import/export, participate in each other’s promotional events, co-host regular briefings on their collaborative efforts and share strategic information.