Banking on a thriving relationship

Financial giant is working hard to aid the growing number of transactions between Africa and China

As the relationship between China and Africa continues to grow, Standard Bank - Africa's largest bank by assets - is committed to helping boost ties.

George Lo, the bank's executive head of Pan-Africa China banking, says the strategic decision to nurture, facilitate and grow the China-Africa relationship is a key element of the bank's vision.

"The China-Africa relationship is crucial to the growth of the bank, the development of the continent and the geostrategic ambitions of China," he says.

Lo says Standard Bank recognized the significant opportunities that Africa and China offered each other more than a decade ago.

On a corporate level, this involved developing a strategic partnership with Industrial and Commercial Bank of China. On an individual level, it meant building a full range of transaction capabilities in and across Africa for both African and Chinese clients.

In 2007, ICBC bought a 20 percent stake in Standard Bank, giving the two partners a much stronger bond and creating a unique linkage between the two markets.

"Standard Bank is today a leading provider of trade solutions in Africa, financing and developing the entire import-export value chain between Africa and China," Lo says.

The financing solutions range from opening current accounts in Chinese to helping African businesses to expand their cross-border trade. This is in addition to dealing with imports and exports to and from China, managing telegraph transfers, negotiating letters of credit and buying foreign exchange.

One element aiding transactions is SHYFT, Standard Bank's global digital wallet for Android and iOS. This allows foreign currency purchasing and trading via a mobile phone. Clients and customers throughout Africa and in China can use SHYFT to send, spend, store or exchange funds in US dollars, euros, British pounds and Australian dollars.

As well as enabling direct renminbi clearance and trading, Lo says, Standard Bank's partnership with ICBC means that ICBC account holders receive preferential rates.

"Today, Standard Bank's personal and business banking division alone has more than 30 Chinese-speaking bankers across 15 markets, acting as relationship managers. Many of these are Africans who speak Chinese," he says. "Across the whole bank, there are over 100 Chinese-speaking relationship managers, bankers and advisers, including traders on the bank's trading floors."

The bank recently launched its first Africa China Banking Centre, or ACBC, in Johannesburg, South Africa. Staffed by Chinese-speaking bankers, this is a one-stop shop for businesses and individuals seeking to transact in, across and out of Africa.

There are plans to launch ACBCs in Kenya, Uganda and Tanzania in 2018 and later expand to other African countries.

Lo says Standard Bank is currently working on several card options, with a view to allowing businesses and individuals to transact in a simpler, more efficient manner across its geographic range.

"In short, the range, scale, technology and volume of everyday transactions that support these relationships is transforming both Africa and China daily, deepening the mutual relevance of both ends of the Africa-China trade and investment corridor," he says.

By building financial structures, deploying skills and evolving platforms and technologies, Lo says, Standard Bank is supporting and growing the ability of Africa and China to realize the full development potential they have in each other.

Based in Johannesburg, Standard Bank Group has a footprint across 20 African countries and is listed on the Johannesburg Stock Exchange.

The group has more than 54,000 employees, over 1,200 branches and 8,822 ATMs on the African continent, enabling it to deliver a complete range of services.

edithmutethya@chinadaily.com.cn

(China Daily Africa Weekly 04/27/2018 page28)