Stanbic IBTC launches ACAP in Nigeria.

The Africa-China Agent Proposition (ACAP); is a product with the aim of changing the view African importers have about Chinese suppliers. The ACAP will provide access to financing for African importers and will also give them the authority to sight and control the entire importing and logistics process.

To aid Nigerian importers to safely and efficiently source for quality goods from competitive Chinese suppliers; Stanbic IBTC  have officially launched the ACAP product in Nigeria. There are also plans to launch the product in Ghana and South Africa; so as to open China to Africa by connecting African importers and Chinese exporters.

Currently, Nigerian importers only import goods from a few trusted Chinese suppliers; and this have to a large extent limit their bargaining power. While ordering online provides a wider range of suppliers, it however cannot guarantee the quality of goods.

Also most times during the transaction between Nigerian importers and Chinese suppliers; advance payments are usually required but without reciprocal guarantees of delivery or quality. This simply implies that the Nigerian importers bear most of the risks during these transactions.

According to a statement from Stanbic IBTC, another challenge to the China-African trade negotiations is language and cultural barriers. However to tackle this challenge, the biggest bank in Africa, Standard Bank have leveraged on its partnership with the Industrial and Commercial Bank of China (ICBC); which is the biggest bank in the world; to help connect African importers with a dedicated trade agent in China.

Benefits of ACAP

The ACAP will deepen trust in Africa-China trade relationships, as it provides African importers access to the best suppliers in China, the best payment terms and also the best quality. A letter of credit will support transactions and if any of the terms of the letter of credit are not met; payment will not be made.  This will place African importers in a much stronger negotiating position when it comes to the price, quality and efficiency of importing Chinese goods.

Also, the 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. This payments will be guaranteed by Stanbic IBTC Bank or Standard Bank and ICBC.

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