Cordial ties spell bounty for investors
SHANGHAI: A relationship of trust has been built between China and Africa, and businesses on both sides can benefit from that relationship, a banker from South Africa said.
"The way in which the Chinese government and Chinese businesses have conducted themselves in their approach to Africa during the past few years has been well-positioned," said Jacko Maree, chief executive of the Standard Bank, Africa's largest bank by assets.
This has helped to build a positive political groundwork for China-Africa links, he said in an interview with China Daily.
In recent years, China-Africa trade and economic cooperation has grown rapidly. Two-way trade volume, which was only $10 billion in 2000, surpassed $50 billion last year and is expected to reach $100 billion by 2010.
Chinese direct investment in Africa totaled more than $11 billion by the end of last year and more than 800 Chinese companies have operations in Africa.
However, for Chinese companies interested in Africa, the first priority should be understanding the countries they are going to deal with in terms of laws and peculiarities, Maree said.
For instance, "there are a number of African countries where the commercial laws are not very clear," he said. "Companies cannot just rely on contracts, but rely on local business practices and custom."
The Johannesburg-based Standard Bank, with a presence in 18 African countries and 21 nations outside the continent, offers assistance to Chinese companies trying to invest in Africa or to have trade links with it, said Maree.
With its professionals who are well versed in local issues and its extensive physical network in the continent, the bank can provide consultation or financing in trade transactions or projects, he explained.
The bank has already provided services to some Chinese companies operating in Africa, such as Huawei Technologies Co Ltd, ZTE Corporation and Jinchuan Group.
It is using its Hong Kong and Shanghai offices as a platform to contact Chinese clients, said Nicholas Hamilton, chief executive of Standard Bank in Asia.
He said the bank's growth in Asia in mainly focused on four areas of business - commodities, global market, banking and trade finance, and principle trading - that are its main strengths.
(China Daily 05/17/2007 page25)
