Redefining Global Trade

Africa is virtually unre- cognizable compared to even 10 years ago， largely due to the continents ever-deepening partnership with China. Over the past decade， Chinas trade with Africa increased from $100 billion in 2007 to $175 billion by the end of 2017. Chinese foreign direct investment stock in Africa has grown at twice this speed， currently approaching$35 billion. Today， total Chinese concessional lending to Africa exceeds $100 billion.

The result is that across Africa and China a vast range of business activities， relationships and transactions are redefining the scale and flow of global trade within what Standard Bank calls the Africa-China trade and investment corridor.

On a daily basis， African traders travel to China or transact with suppliers or receivers of goods in China. Chinese travel to Africa， setting up or operating businesses across the continent. Africans， importing goods from China， expand across borders and regions supported by their Chinese suppliers. Chinese multinational companies operating in Africa need to transact in and between African countries. African governments and multinationals conclude construction deals with Chinese suppliers， while Chinese companies building this infrastructure develop and rely on African suppliers and contractors to support and implement projects. As more Chinese businesses engage in local beneficiation， the quality and sophistication of goods being exported by Africa to an ever-wider range of global markets is increasing.

Strategic partnership

As Africas largest bank， Standard Bank recognized the significance and the opportunity that Africa and China had in each other more than a decade ago. “The strategic decision to nurture， facilitate and grow this relationship - so critical to the growth of the bank， the development of our continent and the geostrategic ambitions of China - is a key element of our vision，” explained George Lo， Executive Head of Pan Africa China Banking for Standard Bank Group. At the group level， this involved developing a strategic partnership with the Industrial and Commercial Bank of China（ICBC）， while at the individual level， this meant building the full universe of transaction capability in and across Africa for both African and Chinese clients across all client segments.

From opening a current account in Chinese， to assisting African businesses expand across borders， importing or exporting goods to China， managing telegraphic transfers， negotiating letters of credit， or buying foreign exchange， “Standard Bank is today a leading provider of trade solutions in Africa， financing and developing the entire import-export value chain between Africa and China，” said Lo.

Financial ecosystem

Elements of the broader financial ecosystem that support the myriad of relationships and transactions that constitute the Africa-China trade and investment corridor include：

SHYFT， Standard Banks global digital wallet for Android and iOS， allows foreign currency purchasing and trade - all from a mobile phone. Clients and customers throughout Africa and in China can use SHYFT to send， spend， store or exchange funds in USD， EUR， GBP and AUD.

In addition to enabling direct renminbi clearance and trading， Standard Banks strategic partnership with ICBC means that beneficiaries that are ICBC account holders， receive preferential rates.

Today， Standard Banks personal and business banking division alone has more than 30 Chinese-speaking bankers across 15 markets acting as relationship managers. Many of these are Africans who speak Chinese. Chinese-speaking bankers deliver Standard Banks broader pan African and global capabilities in Chinese to individual as well as small and large commercial Chinese enterprises operating in individual African countries， between African countries and between Africa and China.

Across the whole bank， there are over 100 Chinese-speaking relationship managers， bankers and advisors including Chinese-speaking traders on the trading floors.

Standard Bank recently launched its first Africa China Banking Center （ACBC） in Johannesburg. ACBCs， manned by Chinese-speaking bankers， are one-stop-shops for businesses and individuals seeking to transact in， across and out of Africa. More ACBCs are planned for Kenya， Uganda and Tanzania in 2018， with other countries to follow thereafter.

Standard Bank is currently working on several value propositions in the card space， looking to allow businesses and individuals to transact in a simpler， more efficient manner across its geographic footprint.

In short， the range， scale， technology and volume of everyday transactions that support these relationships is transforming both Africa and China - daily deepening the mutual relevance of both ends of the Africa-China trade and investment corridor.

By building the financial structures， deploying the skills and evolving the platforms and technologies， “Standard Bank is supporting and growing the ability of Africa and China to realize the full development potential that we have in each other，” said Lo.