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Kenya-EU Economic Partnership Agreement: A Milestone in Bilateral Trade 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 Markets The 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 2016 This 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 Partnership During 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 Implications Von 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 Implementation Before 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 Ambition The 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. Economic and Development Cooperation: A Dedicated Chapter The deal includes a dedicated chapter on economic and development cooperation, focusing on enhancing Kenya's economic competitiveness. This ensures a holistic approach to the nation's sustainable development. Unlocking New Avenues: EU's Trade Commissioner Optimistic Valdis Dombrovskis, the EU's trade commissioner, termed the agreement as a "historic" accord that would open new areas for cooperation and mutual benefit. This reflects the EU's commitment to fostering collaboration beyond traditional trade realms. Bilateral Trade Landscape: EU as a Significant Partner The EU currently accounts for over 20 percent of Kenya's total exports, primarily agricultural products such as vegetables, fruits, tea, and coffee. The bilateral trade volume exceeded 3.3 billion euros in 2022, showcasing the robust economic relationship. Diplomatic Implications: Kenya's Strategic Position in Global Affairs Against the backdrop of increased diplomatic engagements globally, particularly with China and Russia, Kenya emerges as a diplomatic stronghold in East Africa. Its stable democracy and reliable reputation make it a focal point for international partnerships. EU's Countermove: A Strategic Investment Initiative In response to China's Belt and Road initiative, the EU announced increased investments in Kenya through its Global Gateway initiative. This move strategically positions the EU to counterbalance China's influence in the region. Looking Ahead: Potential EAC Participation While Kenya spearheads the agreement, it leaves the door open for other East African Community (EAC) nations to join. President Ruto expressed optimism about regional collaboration, emphasizing the collective benefits. In conclusion, the Kenya-EU Economic Partnership Agreement signifies more than a trade deal; it symbolizes a commitment to shared prosperity, sustainable development, and deeper diplomatic ties. As the agreement progresses through the ratification process, it holds the promise of unlocking unprecedented opportunities for both Kenya and the European Union. What is duty-free and quota-free trade Duty-free and quota-free trade refer to trade agreements or arrangements between countries where certain goods can be imported and exported without the imposition of tariffs (duties) or quantitative restrictions (quotas). In duty-free trade, participating nations eliminate or significantly reduce customs duties on specified goods, promoting the flow of these items across borders without additional financial burdens. Quota-free trade, on the other hand, removes limitations on the quantity of specific goods that can be traded between countries. Historically, quotas were imposed to regulate and restrict the amount of particular products entering a country to protect domestic industries or manage trade balances. However, in quota-free trade agreements, these restrictions are lifted, allowing for the free movement of goods without predetermined quantity limitations. These trade arrangements aim to foster economic cooperation, encourage international commerce, and promote global economic development. By eliminating tariffs and quantity restrictions, duty-free and quota-free trade agreements create more open and accessible markets, facilitating increased trade volumes and contributing to the growth of participating economies. Read More: https://twitter.com/NgulminthangL

Wema Bank taps Kachasi Trade Finance to improve efficiency via automation Wema Bank has gone live on Kachasi Trade Finance Software to enable the achievement of full automation of trade finance operations. Trade finance is a phrase used to describe different strategies that are employed to make international trade easier. The market share is expected to increase by $12.20 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 4.38 percent. Kachasi, owned by Union Systems, is the first indigenous trade finance software application built to automate the entire lifecycle of international and domestic trade finance operations, and it is the result of over 20 years of experience implementing and customising various international trade finance software applications for banks across Africa. Wema Bank’s journey with the software began in March 2022. As a first of its kind, Kachasi Trade Finance Software comes with intuitive design and functionalities. “We are pleased to be joining the league of banks around the world that re using technology to transform trde finance operations,” Tajudeen Bakare, divisional Head of Operations and General Service, Wema Bank. “This project will significantly reduce turnaround time improve operational efficiency, and unlock new revenue streas for the bank. It will also improve the bank’s ability to respond quickly to regulatory policies and updates.” Read more: https://ngulminthanglhanghal.wordpress.com/2023/01/18/wema-bank-taps-kachasi-trade-finance-to-improve-efficiency-via-automation/ #finance #Africanfinancialinstitutions #Ngulminthang #tradefinance #WemaBank

African Development Bank Partners with Bank One on Trade Finance The African Development Bank Group is supporting the trade finance efforts of Bank One Limited. The Group will provide a $40 million trade finance package that is meant to help Bank One of Mauritius increase its capacity to provide trade finance to small to medium-sized businesses (SMBs), local corporates and other key sectors in Mauritius and across Africa, the African Development Bank said in a Thursday (Dec. 22) press release. The package includes a $25 million risk participation agreement and a $15 million transaction guarantee, the release said. “Given the cross-sectoral nature of trade, the proposed facility, while leveraging Bank One’s footprint, is expected to enhance the African Development Bank’s efforts to integrate Africa and improve the quality of life for the African people,” African Development Bank Head of Trade Finance Lamin Drammeh said in the release. Africa has an annual “trade finance gap” of $81 billion because SMBs and other domestic firms have greater difficulty accessing trade finance than do multinationals and large local corporates, according to the press release. The African Development Bank aims to reduce that gap by deploying the new transaction guarantee and risk participation agreement with Bank One, which is a leading Mauritian and regional banking for with reach that extends across the continent and globally, the release said. Read more: https://prnewsdistribution.co.uk/african-development-bank-partners-with-bank-one-on-trade-finance #AfricanDevelopmentBank #B2bPayments #CrossborderPayments #DigitalPayments #Smes #TradeFinance #NgulminthangLhanghal

Bpifrance selects Thought Machine to power finance offerings to SMEs Thought Machine, the UK-headquartered technology unicorn has been selected by Bpifrance, the French public investment bank, to use its cloud-native core banking platform. Bpifrance will be using Thought Machine’s Vault Core platform to power its digital transformation strategy. Thought Machine claims that Vault Core’s Universal Product Engine allows Bpifrance to build, test, and launch new products faster than other core systems. Its first product on Vault Core, a two-year commercial loan, is already live. The cloud-native design of Vault Core ensures Bpifrance can scale at pace, both in terms of product offerings and customer numbers. It will also be able to configure and personalise financial products to match customers’ specific needs. Read more: https://ngulminthanglhanghal.mystrikingly.com/blog/bpifrance-selects-thought-machine-to-power-finance-offerings-to-smes #Bpifrance #CoreBankingPlatform #DigitalTransformation #FinTech #InvestmentBanking #SMEs #NgulminthangLhanghal

Vayana TradeXchange initiates its first transaction in partnership with VoloFin Vayana TradeXchange, the International Trade Financing Services (ITFS) platform facilitating cross-border trade finance under the supervision of the International Financial Services Centre Authority, GIFT City, announced the completion and disbursement of its first set of export financing transactions. Vayana TradeXchange (VTX) is built and operated by Vayana Pvt Ltd, a 100% subsidiary of Vayana Network, the largest Supply Chain Finance platform in India. The first set of transactions on VTX have been financed by VoloFin, a global FinTech company offering invoice and supply chain finance solutions to SME businesses. The first cross-border transaction between an Indian Exporter and the USA Buyer was successfully financed on VTX by VoloFin. VTX, the auction-based electronic platform will facilitate the financing of international trade flows by introducing various trade financing products at competitive terms. This will help exporters and importers in India and across the globe to convert their receivables into cash or obtain financing for payments of imports of goods & services. Read more: https://ngulminthanglhangh.wixsite.com/ngulminthanglhanghal/post/vayana-tradexchange-initiates-its-first-transaction-in-partnership-with-volofin #NgulminthangLhanghal #banking #VayanaTradeXchange #TradeFinancingServices #VayanaNetwork #SupplyChainFinance