Banks look to African horizon

Bank of China is leading renminbi promotion in Africa. Provided to China Daily

Bank of China and the Nedbank Group have entered into a strategic business cooperation agreement to boost business between China and Africa.

The alliance will support clients of the BOC as they look to grow and invest in South Africa and the rest of the continent by providing access to an African bank with a deep understanding of how to do business in Africa. Similarly, it will provide support through the expertise of the BOC for Nedbank clients expanding into China.

China is South Africa's most significant trading partner in terms of both exports and imports, and has been so for the past four years, says Brian Kennedy, group managing executive of Nedbank Capital.

"Likewise, African trade with China has grown over the past 20 years and China has displaced France as Africa's largest trading partner, demonstrating the strengthening of ties between China and Africa," he said.

As facilitators of the flow of capital, goods and services, BOC and Nedbank will play a key role in growing and developing this relationship, he adds.

The agreement was signed at the Nedbank head office in Johannesburg last month by Zhikun Qiu, chief executive of the Johannesburg branch of BOC, and Mike Brown, chief executive of Nedbank Ltd.

The cooperation will involve an expanded currency exchange between the two banks, more supporting services to Chinese companies with operations in Africa via the banks' networks, larger cooperation in infrastructure investment in southern Africa, as well as commodities trade and more bankcard cooperation.

Noting that 50 of China's 73 Fortune 500 Companies have a presence in Africa, BOC said the role of Chinese finance in Africa has evolved rapidly over the past decade, moving from a peripheral actor to one of increasingly central importance to African development. BOC already has alliances with Nedbank's parent, Old Mutual, and with Ecobank, Nedbank's partner in Central and West Africa.

Li Feng, assistant executive director of the BOC Johannesburg branch, said the partnership is a chance to bridge the banks' business gaps in Africa and further develop a relationship that began in 1992.