Absa Group's head of international operations told Reuters that Absa Group stands to benefit as Chinese private companies increase investment in Africa.
Cheryl Bass, CEO of Absa International, said in an interview that China's involvement in Africa, which for decades has been defined by large-scale government-financed projects, is undergoing a transformation.
“It was really government against government,” she said. “Some would argue that it's changed slightly and gone from government to business. And now it's going from business to business, and I think we're seeing that more and more.”
advertisement
Continue reading below
Johannesburg-listed Absa said on Wednesday it would open a non-banking subsidiary in Beijing to support Chinese clients as part of a strategy to offer its expertise in African markets to foreign clients.
The new office is operational and scheduled to officially open in May, the bank said.
Mr Basu said Absa still had close relationships with Chinese state-owned enterprises and development finance institutions, which would continue to play a key role in Beijing's ambitions in Africa.
But Absa's Chinese subsidiary will give the bank a better understanding of the needs of new and potential customers.
“Being in China is really important to understand which companies are pivoting their strategies towards Africa and where they might invest,” she said.
Mr Basu said there had been significant investment by Chinese companies in mining and mining infrastructure in countries including Zambia, particularly in the critical mineral sector.
Chinese companies were also making deep inroads into technology, communications, light industry, and agriculture, targeting markets such as Kenya and Ghana, as well as Tanzania, Uganda, and Mozambique.
Absa has been pursuing an international expansion strategy since former owner Barclays announced a sale in 2016, ending 90 years of operations in Africa.
The company has already opened offices in the United States and United Kingdom, and is considering a strategy for the Middle East and Asia, Bass said.
“Everything we do is about developing a pipeline of trade and investment engagement into Africa,” she said.
