Financial services providers Standard Bank and the Industrial and Commercial Bank of China (ICBC) have renewed their strategic cooperation partnership for another five years, to continue leading the Africa-China trade and investment markets on the continent.

In 2022 alone, their facilitated trade flows between Africa and China were valued at $600-million.

Recognising the significant growth potential of the continent, both Standard Bank and ICBC have invested heavily in building the necessary infrastructure and relationships to provide African and Chinese businesses easier access to the vast opportunities in this strategic trade corridor.

For example, the banks have facilitated the growth journeys of more than 3 500 Chinese commercial, corporate and State-owned entities across 15 African markets, with the bulk of these firms being privatively owned and invested in a range of sectors.

During the signing of the renewal agreement on August 24, the executive leadership of both banks committed to building on what has been a highly successful 15-year partnership by unlocking enhanced opportunities across the Africa-China trade corridor.

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.

Standard Bank group CEO Sim Tshabalala says the bank has long understood the importance of China to the growth of Africa, including by giving African exporters access to the Chinese market. He is confident that the companies will continue driving inclusive and sustainable growth for generations to come.

Tshabalala also notes that the countries will become even more relevant to each other through joint endorsement of the Belt and Road Initiative and when opportunities are leveraged through the African Continental Free Trade Area.

ICBC chairperson Chen Siqing comments that the partnership between the banks has encouraged robust and impactful trade between Africa and China, including improving the lives of Africans.

Siqing says China, as Africa’s biggest trading partner, can help to advance Africa’s energy transition and journey to net-zero emissions, including through industrialisation and skilling the young African population.