Fashion
China-Kenya trade corridor relaunched to boost SME participation
The China-Kenya trade corridor has been relaunched to boost small and medium enterprises (SMEs) participation in bilateral trade by Standard Chartered Bank.
The China-Kenya trade corridor has been relaunched to boost SME participation in bilateral trade by Standard Chartered Bank.
The initiative offers better financing access, lower transaction costs, and faster cross-border payments.
By promoting RMB usage, SMEs can achieve up to two per cent savings while benefiting from near-instant settlements and improved cash flow efficiency.
The initiative is designed to empower local SMEs through improved access to financing, lower transaction costs, and direct connectivity with Chinese markets, particularly in manufacturing and green energy sectors.
Richard Li, group head of global chinese at Standard Chartered, said, “The solution promotes the use of RMB that can deliver tangible benefits, including lower foreign exchange costs, improved working capital efficiency and better alignment of cash flows.” He added that the solution enables small entrepreneurs engaged in Sino-Africa trade to manage multiple currencies, access reliable financing, and navigate complex regulatory environments.
Originally launched in China in 2006, the initiative reflects the bank’s continued commitment to supporting SMEs in their international expansion. Bernard Kombo, head of SME Banking at Standard Chartered Kenya, noted that businesses can achieve up to two per cent annual savings by using RMB for working capital financing.
Kombo further highlighted that the corridor leverages a cross-border international payments system, enabling settlement within 15 seconds, significantly faster than traditional methods that take one to two days.
Fibre2Fashion News Desk (JP)