IMPALAPAY LIMITED PARTNERS WITH WORLD CAPACITY BUILDERS IN FACILITATING TRADE FINANCE FOR SMEs
Nairobi, Kenya – September 29, 2018
World Capacity Builders Inc., a British Columbian, Canada company and ImpalaPay Limited, a Fintech operating in in Nairobi, Kenya has signed an MOU on August 8, 2018 and, as a result, are officially strategic partners.
ImpalaPay Limited is pleased to announce a partnership with World Capacity Builders Inc. (WCB) of British Columbia, Canada to enable the cross- border traders join and participate in the Global economy and create meaningful and impact societal wealth. The partnership also helps ImpalaPay to extend its global reach in mobile payments, and simultaneously to build the capacity of African Women and Youth. Capacity building will focus on Education, International trade, and Trade finance.
WCB will use its ecosystem to enable ImpalaPay to explore opportunities with other African countries. In Trade Finance, the partnership notes that there is an urgent need for non-conventional methods of financing international trade is required in Africa.
The leaders of emerging countries, including Africa, are aware that one of the major roadblocks to raising the financial status of their countries is the theory that their countries have the inability to repay financed deals in international trade.
Large scale financing is based on a country’s ability to repay the loans. It is therefore, very difficult for them to obtain sanctioned finance for the development of their countries’ resources. In some countries, resources are scarce.
ImpalaPay and WCB are of the opinion that with the emergence of Fintech (and the ecosystem of WCB) there is a huge potential to apply innovative ways for trade finance in Africa.
Since the Global Economic Crisis of 2008, more than one hundred countries in the world do not possess the assessed financial status with The World Bank to receive financial support from traditional finance institutions. Crisis-related protectionism by the “developed” countries have laid many obstacles for emerging countries to recover from that economic tidal wave. Foreign Direct Investments (FDI) have ground to a halt. Some G8 countries have changed their policies drastically. China has now come to the fore amidst severe criticisms. But of late, it appears that China is tapped out due to several countries inability to service the loans!
Indeed, international trade finance to such countries is looking grim. To them, the modern globalization engines i.e. technology and policy liberalization have gone into a hiatus after the subprime debacle. Yes, the ‘Goldilocks’ moment in the half-decade after 2002 where growth, trade and FDI soared to greater heights, and financial globalization soared even higher is now but a pipe dream! The once-upon-a-time labor-abundant Asia resource is now more expensive. China, and to a lesser extent, India are more careful in their investments.
Over 70 % of the trade in East Africa is largely informal. The majority of cross-border traders fall in this category. Cross-border trade in East Africa is characterized by inefficiencies, high transaction costs and
low competitiveness that are a reflection of existing barriers to formal trade, poor enabling environment and restrictive trade policies and practices. In fact, the majority of small-to-medium size trade is carried out by women. The means of transaction is, by a large percentage, cash based. This limits financial inclusion. Access to financial instruments and ability to access markets beyond their immediate environments severely impairing their global competitiveness.
In March 2018, ImpalaPay and Busia Cross-border Traders Association (BCBTA) agreed to work together to overcome these barriers. The focus is on the Kenya/Uganda border but with BCBTA, it serves 5 countries. The ImpalaPay financial hub will supplement a global network with a mobile wallet that will provide financial inclusion suitable for cross-border traders and enabling access to global payments via electronic money and other digital payment channels.
The mobile wallet enables collection and payments on a global scale. With just one B2B and B2C account it offers opportunities for access to formal financial markets credit. ImpalaPay will assist BCBTA to build an electronic market place for bulk purchases and export opportunities. To provide cross-border traders voice at the regional level.
For larger international/cross-border deals, WCB will be called to assist with FDI-secured financial plans and foreign exchange facilities.
World Capacity Builders (WCB) works with technical savvy companies with innovative technologies, platforms and financial systems in the Fintech space as strategic Partners. These Partners, on the other hand, are expected to be sustainable and help in World Capacity Builders’ mission which is to improve the financial capacity of the poor and underprivileged in the world. WCB and its Associates have financial networks that, on individual basis, have the ability to facilitate financial assistance to such emerging countries. It is primarily based on the ability of governments to service the financial packages which usually involves securitization of their natural assets and their willingness to work with WCB capacity elevation programs.
ImpalaPay Limited Financial Network has built a global payment infrastructure by interlinking banks, mobile wallets, cryptocurrencies and partner terminals into an interoperable global payment infrastructure. Working with other financial institutions, ImpalaPay is building a “digital crypto bank” that will provide financial inclusion, disrupt and transform trade and transactional finance in Africa and emerging markets.
Together the Parties will work together to formulate an International Trade Finance platform that initially focuses on Kenya, and later Africa; and to seek to provide financial technology and solutions to the diverse Kenyan and African communities thus achieving a shared goal of elevating the capacities of the underprivileged in society.
CEO, ImpalaPay Limited
CEO, World Capacity Builders Inc.
IPL pioneered cross border peer to peer and merchant mobile payments in Africa. Our API (application program interface) is present is 117 countries globally with access to over 200 million wallets and 300,000 payout agents in Africa alone. Our API is secure, robust and easy to integrate with. We enable end to end transactions to more than 117 countries worldwide.
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