Chinese bank contributes to South Africa growth

New stats show direct investment from China to South Africa has exceeded 10 billion US dollars, creating job opportunities and economic growth in South Africa.

South Africa-based Standard Bank is the largest financial institution in Africa.

ICBC Chair Yi Huiman [Photo: China Plus]

In 2008, the Industrial and Commercial Bank of China became its largest shareholder, after acquiring a 20 percent stake in Standard.

Since then, the two sides have been increasing their financial services to both Chinese and African businesses, with a focus on infrastructure.

Wang Lubin, ICBC's chief Africa representative, says co-operation between the two banks impact areas which are larger than China and South Africa.

"It's been ten years since 2008. Through this time, our two banks have jointly provided financial support to 35 major projects in 13 countries, involving Chinese investment worth nearly 20 billion US dollars. In this way, we're doing our part to promote economic and trade ties between China and Africa."

Wang Lubin with ICBS says apart from supporting major infrastructure construction projects in Africa, they have also tried to introduce qualified African manufacturers to the vast international market, including into China.

"Most recently, the two banks launched a program to encourage African companies to take part in the forthcoming China International Import Expo. Thanks to its well-established customer network in Africa, Standard Bank is good at selecting the best local companies and introducing their products to China. This helps boosts their export and international business."

Financial cooperation is part of China's ten-point plan to further tap the potential of the Sino-Africa relationship.

The plan was put forward in 2015 when South Africa hosted the 6th Forum on China-Africa Cooperation.

ICBC Chair Yi Huiman reveals that upgrading its partnership with the Standard Bank is part of the Chinese bank's development plan in the future.

"No matter whether it's from the government's perspective, or that of the people, and businesses, this is definitely win-win situation. Cooperation contributes to the well-being of the people from both sides. This is also a path we have chosen in globalization."

When talking about the future, Sim Tshabalala, CEO of Standard Bank, says plans are being put in-place to provide greater support for the capital needs of companies from China and Africa.

"It looks to me that Chinese and South African trade and investments will continue to grow. At the moment, South Africa exports more than imports from China and the term of trade of are in favor of South Africa. But South Africa exports minerals, and I would think that in the conversations we have one another, we are going to be talking about how we improve the manufacturing capacity of South Africa so that contribute to more jobs and their relations between China and South Africa. "

Standard Bank's CEO says as China moves up the production value chain, there will be more opportunities for some of that manufacturing capability to find its way into South Africa as well.