• The agreement focuses on trade finance and cross-border payments, including in renminbi

• It builds on a partnership between the two banks that began more than 15 years ago

• China–Africa trade topped $314.4 billion in the first 11 months, up 17.8% year on year

Pan-African banking group Ecobank and Bank of China (Mauritius) signed a memorandum of understanding on December 22 to strengthen financial ties and facilitating economic exchanges between Africa and China.

The MoU builds on a partnership established more than 15 years ago between the two institutions. It provides for the development of trade finance solutions and cross-border payment services, with a focus on transactions denominated in the renminbi, China’s official currency. The initiative is expected to give African and Chinese companies access to faster and more suitable settlement mechanisms for international trade, while improving the security of financial flows.

The two banks also plan to share technical and operational expertise to support economic growth across the continent. Potential joint projects include the structuring of syndicated loans and other financial instruments for investments involving Chinese stakeholders.

Jeremy Awori, group chief executive officer of Ecobank, said the renewed partnership with Bank of China is expected to deliver concrete results in trade finance, payments, and renminbi solutions, and to be rolled out across the group’s network to better serve clients and strengthen the China–Africa economic corridor.

The agreement is also expected to further deepen China–Africa relations, which have expanded over the past two decades through growing economic partnerships.

China remains Africa’s largest trading partner. Bilateral trade exceeded the $300 billion mark for the first time, reaching $314.413 billion in the first 11 months of the year, up 17.8% year on year, according to data recently released by China’s General Administration of Customs.

Over the same period, Chinese exports to Africa rose 26.3% year on year, while imports from Africa increased 5.2% on an annual basis.

Sandrine Gaingne