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Absa Group is positioning to benefit as private Chinese firms increase their investment in Africa, the head of the bank’s international business told Reuters.
China’s involvement in Africa, for decades defined by large, government loan-backed projects, is undergoing a transformation, Absa International CEO Cheryl Buss said in an interview.
“It was very much government to government,” she said. “One could also argue it shifted slightly and became government to business. And I think now we’re seeing it being business to business, increasingly so.”
On Wednesday, Johannesburg-listed Absa said it was opening a non-banking subsidiary in Beijing to support Chinese customers as part of its strategy to offer expertise on African markets to foreign clients.
The new office is operational and will officially open in May, the bank said.
Buss said Absa was still nurturing close relationships with Chinese state-owned enterprises and development finance institutions, which would continue to play an important role in Beijing’s ambitions in Africa.
Absa’s Chinese subsidiary, however, would allow the bank to better understand the needs of new and potential clients. – Moneyweb
Online Reporter
Bongani Ndlovu