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(Ecofin Agency) – The South African banking group which has branches in 10 African countries plans to offer advisory services to Chinese companies interested in investing in the continent, among other things.
South African bank Absa Group will set up a representative office in Beijing to serve Chinese companies looking to expand their business to African markets, the South China Morning Post reported on Monday, May 15, citing an executive source.
“We believe China is a good place to commit more financial resources, and that China will bring us strong returns in the next five to 10 years,” said Zhu Kai, head of Absa Group’s corporate and investment banking operations in China, noting that the group is seeing double-digit revenue growth from the Middle Kingdom.
According to Mr. Kai, the proposed office is awaiting approval from the South African regulatory authorities. In the first stage, the office is expected to be a consulting unit with less than 10 staff.
Expanding on the reasons that prompted the choice of Beijing as host to the representative office, Mr. Kai said the city is home to the headquarters of most Chinese state-owned enterprises and African diplomatic missions.
“Beijing is the hub of African embassies and consular offices. Besides trade agreements, there will also be agreements between governments. That’s why we chose it as our first destination,” he explained.
Currently, in addition to its domestic market, Absa Group has subsidiaries in ten African countries, including Ghana, Kenya, Tanzania, and Botswana.
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