7 August 2013
South Africa’s Nedbank and the Bank of China have signed a strategic business cooperation agreement to grow business flows between China and Africa, as well as provide support to investors.
“The alliance will support clients of the Bank of China as they look to grow and invest in South Africa and the rest of Africa,” Nedbank said in a statement on Monday.
“This will be done by providing access to an African bank with a deep understanding of how to do business in Africa and similarly providing support through the expertise of the Bank of China for Nedbank clients expanding into China.”
Nedbank is Africa’s fourth largest bank.
The Bank of China is the ninth largest in the world and it established a Johannesburg branch in 2000 to support the development of investment and trade between China and African countries.
“The China-Africa relationship is dynamic on many fronts,” Nedbank said.
“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.”
Trade between South Africa and China equalled R201-billion in 2012. Trade between the rest of Africa and China has also grown dramatically, with China accounting for 20% of the continent’s trade and replacing France as Africa’s largest trading partner.
China has committed approximately $101-billion to commercial projects across the continent since 2010.
“The cooperation agreement is expected to enable the banks to align their collective efforts to leverage each party’s strengths across Africa,” Nedbank said.
“This agreement formalises an existing relationship between Nedbank and the Bank of China, and we will continue to work together on transactions as joint mandated lead arrangers,” said Nedbank Capital’s group managing executive, Brian Kennedy.