FirstRand, South Africa's biggest financial services group, has agreed a strategic partnership with China's second-largest bank China Construction Bank (CCB), it was announced yesterday.
The two firms signed an agreement in Johannesburg that will see them jointly advising CCBÔÇÖs Chinese clients seeking to make investments in Africa and FirstRandÔÇÖs customers looking to do business in China.
The deal marks a meaningful step in both firmsÔÇÖ strategies to grow more aggressively on the African continent.
The tie-up will enable the banks to compete more effectively and participate in large-scale investments predicted to emerge in Africa, where Chinese companies are currently investing heavily.
FirstRand CEO Sizwe Nxasana said in a statement: ÔÇ£CCB is a highly successful global bank, a meaningful player on the African continent and therefore a very powerful partner for our renewed focus on growth in Africa.ÔÇØ
CCB vice-president Chen Zuofu commented: ÔÇ£The corporate and investment banking skills provided by FirstRand Bank will provide an enhanced offering to clients. In addition, both CCB, through its African division, CCB Johannesburg branch, and FirstRand Bank are well positioned to identify new investment opportunities throughout Africa.ÔÇØ
Africa is seen as a huge growth market for Chinese firms. In March, Beijing-based Industrial & Commercial Bank of China bought a 20 per cent stake in FirstRandÔÇÖs rival Standard Bank Group, Africa's biggest banking concern.
The number of Chinese construction firms pursuing projects on the African continent is also rising sharply, particularly in countries such as Angola and Zimbabwe.
Johannesburg-based FirstRand said that yesterdayÔÇÖs agreement could extend to other areas of financial services in the future.
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