Contour, a global network of banks, corporates, and trade partners digitizing trade financing documents such as letters of credit, has announced that Pan-African ABSA Corporate and Investment Bank (Absa CIB) is finalizing negotiations to join the network.
It has been a busy 2 days at #GTRAfrica 2023 in #CapeTown!
We are excited to offer @Absa_CIB clients a fully digital end-to-end #letterofcredit solution and together, unlock more potential for trade growth across #Africa.
Read our statement here: https://t.co/KSgzsJxh5R pic.twitter.com/H1d4jT58Vq
— Contour (@contourtrade) March 17, 2023
This means that clients of the banks shall be able to adopt a fully digital end-to-end Letter of Credit (LC) settlement process, with the The African Continental Free Trade Area (AfCFTA) which is predicted to boost intra-Africa trade by 52.3 percent and expand the size of the continent’s economy to US$29 trillion by 2050, one of the incentives for the deal.
“Africa is an emerging and exciting opportunity for trade finance digitisation, especially with the promise of AfCFTA in creating the first continent-wide free trade area. This will be crucial in unlocking more potential for trade growth across Africa and to its key trading partners. ABSA is placing itself at the forefront of promoting sustainable growth and development for its clients.” said Carl Wegner, CEO at Contour
A letter of credit, or a credit letter, is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. If the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
- South Africa
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