Just days after South Africa signed a memorandum of cooperation with eight Chinese power companies at the Brics Summit, Standard Bank has announced a five-year renewal of its cooperation partnership with the Industrial and Commercial Bank of China (ICBC).

Two of the biggest banks in their respective geographies have committed to building on their already successful 15-year partnership by unlocking enhanced opportunities across the growing China-Africa trade corridor. Last year alone, the two banks facilitated trade flows valued at $600-million between Africa and China.

“Standard Bank has long understood the primary importance of China to the growth of our continent, and I am privileged and honoured to thank my colleagues at ICBC for their ongoing partnership,” said Standard Bank’s Group CEO, Sim Tshabalala.

“We look forward to the next 15 years together as we build on our successes and drive inclusive and sustainable growth in Africa.”

Earlier this month, Standard Bank posted positive results, showing that its African operations were significantly buoying the bottom line, with a 45% contribution to headline earnings.

“This relationship is critical to accelerating Africa’s economic development, broadens China’s relationships with Africa, and gives African exporters access to the world’s largest and most dynamic market.

“By jointly endorsing the Belt and Road Initiative and leveraging the opportunities presented by the African Continental Free Trade Area, we expect Africa and China to become even more relevant to each other,” Tshabalala said.

The ICBC chairman, Chen Siqing, echoed these sentiments, noting that China was Africa’s biggest trade partner.

“We want to build on the successes while opening the door to renewed growth. This is especially true in the areas of energy transition, which can create sustainable and long-term positive impacts when we jointly support our respective countries’ and customers’ journeys to net zero emissions,” Chen said.

“The ongoing development of China-Africa economic and trade exchanges, coupled with China’s economic growth and Africa’s abundant resources, increasing industrialisation, and growing population, create a promising environment for continued trade and investment,” he said.

Both banks have invested heavily in building the necessary infrastructure and relationships to provide African and Chinese businesses with easier access to the vast opportunities in this strategic trade corridor.

Standard Bank, with ICBC support, has facilitated the growth of more than 3,500 Chinese commercial, corporate and state-owned enterprises across 15 African markets. The bulk of these firms are private firms invested in a broad range of sectors.

The scale of new private Chinese investment has substantially enhanced Africa’s ability to import and deploy the technology and skills required to build its own economies while also increasing the continent’s ability to attract investment from other markets.

The eight Chinese energy companies that have signed up to assist with energy production are the State Grid Corporation of China, China-Africa Development Fund, China Energy International Group, China General Nuclear Power Corporation, China National Electric Engineering Company, Huawei Technologies, TBEA and Global Energy Interconnection Development and Cooperation Organisation. DM