(Yicai) May 24 -- Absa Group, one of South Africa’s big four banks, is eager to build stronger ties with Chinese clients, an executive told Yicai.

The banking and financial services provider set up a subsidiary in Beijing earlier this month that will offer comprehensive services to Chinese companies in Africa, Zhu Kai, general manager of Absa Group Greater China, said in an interview.

The unit will act as a bridge between the bank and Chinese customers, providing first-hand project information and ensuring smooth business in Africa, he said.

“Many Chinese firms have subsidiaries in Africa,” Zhu said, “and the vast majority of their thousands of employees are locals, including their senior executives.” 

Zhu said Chinese enterprises operating in Africa are becoming more internationalized and standardized, and have an increasing need for banking services. South African banks are keen to meet this demand, he said.

Johannesburg-based Absa has the advantage of an extensive retail network, and the number of its branches in African countries is far higher than those of other global banks, Zhu pointed out.

Chinese companies understandably attach great importance to risk when choosing a bank, but South Africa’s banking sector is tightly regulated, he added.

In recent years, major Chinese state-owned lenders have been setting up branches in Africa to help Chinese businesses go global. Likewise, banks in South Africa have made efforts to enter the Chinese market.

Industrial and Commercial Bank of China, the country’s biggest bank, previously bought a 20 percent stake in Standard Bank, another of South Africa’s big four lenders, becoming its single largest shareholder.

China is the continent’s largest trading partner, bringing huge opportunities for both sides, Zhu noted.

China has been Africa’s No. 1 trading partner for 15 consecutive years. According to the Asian country’s commerce ministry, trade between them reached a record USD282.1 billion last year after growing 1.5 percent from the year before.

China has also invested more in Africa than any other developing country, and in terms of infrastructure construction, the continent is China’s second-largest overseas project market.

Editor: Tom Litting