#FOCAC2024: Standard Bank champions China-Africa trade ties

Source: RVI

"Over the past 24 years, especially in the new era, China has advanced forward hand in hand with our African brothers and sisters in the spirit of sincerity, real results, amity and good faith.

"We stand shoulder to shoulder with each other to firmly defend our legitimate rights and interests as once-in-a-century changes sweep across the world," said Chinese President Xi Jinping at the opening ceremony of the 2024 FOCAC Beijing Summit which was held at the Great Hall of the People.

"We get stronger and more resilient together by riding the tide of economic globalisation, delivering tangible benefits to billions of ordinary Chinese and Africans."

FOCAC 2024 is an event aimed at strengthening the strategic partnership between China and Africa, with a strong emphasis on co-operation for mutual development.

The summit saw African leaders and Chinese officials come together to discuss a wide range of initiatives aimed at fostering sustainable economic growth and addressing key global challenges like climate change, healthcare, and digital transformation.

China's infrastructure commitment

One of the key highlights was the announcement of China’s continued support for infrastructure development across Africa. China pledged to invest in 30 new infrastructure projects, including transportation networks, seaports, and railways, which will enhance Africa's regional connectivity and facilitate trade within the African Continental Free Trade Area (AfCFTA).

These infrastructure projects are seen as critical for Africa’s development and modernisation, particularly under the Belt and Road Initiative (BRI), which has been a cornerstone of China’s engagement with the continent.

China also committed to boosting industrialisation in Africa by supporting local value chains and the development of manufacturing capabilities. This includes creating industrial parks and digital technology co-operation centres, as well as providing training for African business managers.

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— The China-Global South Project (@ChinaGSProject) September 13, 2024

A noteworthy announcement was China’s intent to empower African small and medium-sized enterprises (SMEs) by providing financing and technical assistance, and the country's focus on green development.

Healthcare co-operation was another important topic, with China reaffirming its commitment to enhancing Africa’s health infrastructure. This includes efforts to improve access to healthcare services, especially in rural areas, and address critical public-health issues.

Strengthening bank partnerships

A highlight of FOCAC 2024 was Standard Bank hosting a high-profile roundtable at its Beijing office. During the roundtable, Sim Tshabalala highlighted the bank's deep-rooted commitment to the Africa-China corridor, in partnership with the Industrial and Commercial Bank of China (ICBC), one of the largest banks in the world.

ICBC has a strategic partnership with Standard Bank, which includes a 20% ownership stake in the South African bank. This partnership strengthens both banks’ ability to serve clients in the Africa-China economic corridor.

The collaboration allows ICBC and Standard Bank to leverage each other's expertise in facilitating trade, investment, and financial services between Africa and China, further enhancing economic co-operation between the two regions.

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Tshabalala said: “We have an excellent match between ICBC and the Standard Bank in terms of scale, capabilities, culture and purpose. We are natural partners in the service of our clients both in China and on the African continent.”

Tshabalala emphasised that the partnership is geared towards facilitating trade, investment, and the implementation of the African Continental Free Trade Area (AfCFTA), which will be critical in propelling Africa's next growth chapter.

Tshabalala also shared Standard Bank Group's robust financial performance, noting a strong balance sheet with total assets of approximately $170bn and a return on equity of 18.5%.

AfCFTA trade opportunities

Andrew Robertson, Head: Business Enablement and Operations: Standard Bank Business and Commercial Banking, provided insights into the African Continental Free Trade Area (AfCFTA), describing it as a remarkable opportunity for Africa.

"Improving intra-Africa trade through AfCFTA will significantly advance the economic prosperity of Africa, as well as create opportunity for increased trade with the rest of the world,” he said.

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Robertson highlighted the importance of infrastructure development, with potential for partnerships with Chinese companies playing a key role in supporting trade within AfCFTA.

This was echoed by Funeka Montjane, Chief Executive: Personal and Private Banking, Standard Bank, who emphasised the opportunities for collaboration between Africa and China in renewable energy and technology.

To support this goal, Montjane announced that Standard Bank will be signing a Memorandum of Understanding with Huawei, focusing on network and connectivity, data architecture, cloud technology transformation, technology infrastructure, as well as skills development and transfer.

"This co-operative effort will initially benefit Standard Bank but will eventually extend to our clients, accelerating development across the continent," Montjane said.

Overall, the summit underscored the importance of China-Africa co-operation in building a shared future, with China aiming to strengthen bilateral ties and create more opportunities for sustainable development in Africa over the next three years.