The Central Bank of Nigeria (CBN), First Bank Plc and China Development Bank, on Wednesday, called for a greater partnership between African banks and their Chinese counterparts to deepen trade, investments and developmental ties between China and the African Continent.
Speaking at the 2024 China-Africa Inter-Bank Association (CAIBA) Forum, Olusegun Alebiosu, CEO of First Bank Group , noted that the platform emerged as a result of the growing trade between China and Africa.
Alebiosu observed that today, Chinese companies operate in many African countries where they are instrumental in driving socio-economic growth and infrastructural developments.
Similarly, several African businesses have engaged Chinese trading partners either as buyers of minerals, metals and other raw materials or suppliers of finished goods such as electronics, phones, and equipment.
Alebiosu whose bank co-hosted the forum with the China Development Bank said such partnerships necessitated the pursuit of a stronger correspondent banking and financial systems ties between Africa and China in the interest of both parties.
CAIBA was created to strengthen collaboration between the China Development Bank and 15 African banks, and this year’s edition is the first to be hosted in African since establishment in 2018.
Alebiosu noted fhat the theme of this year’s event, ‘Joining Hands to Advance Modernisation and Strengthening China-Africa Trade, Industrialization and Economic Diversification’ underscores the need for stronger partnership between Africa and China as a panacea for driving further improvements in trade and the overall socio-economic transformation of the two regions.
He said that as a host of this year’s event, FirstBank is fully committed to the achievement of CAIBA’s objective within the shortest possible timeframe.
He also mentioned that the bank has already dedicated Chinese desks – manned by both Chinese nationals and Mandarin-speaking personnel, which have helped improve understanding of the culture, business philosophy and the needs of Chinese firms across all its operating countries.
FirstBank is also poised to expand its business presence beyond Beijing to other important commercial centers in China, including Guangdong and Shanghai.
In his remarks, Adetona Adedeji, CBN Director of Banking Supervision, assured of apex bank readiness to assist Nigerian banks build stronger ties with their Chinese counterparts.
“The CBN will strengthen the banks to boost their partnerships with their Chinese counterparts. As a nation, we have suffered the Dutch Disease and it is time to diversify the economy. In doing so, we must partner with other players across the globe,” he said.
Vice President Kashim Shettima, who also spoke at the event announced that BRICS, a group of five countries, comprising Brazil, Russia, India, China, and South Africa has solidified partnership with Nigeria with foreign capital inflows from them reaching $1.27bn as at June 2024. This is a substantial increase from just $438.72 million about same period last year.
He said this reflects Nigeria’s deepening of its development partnerships, mutual trust and strategic alliances that support its own domestic growth goals.
He said for instance China, world’s second largest economy, remains Nigeria’s number one trading partner, with total trade value reported at N7.38 trillion as at June 2024.
Represented by Aliyu Modibbo Umar, Special Adviser to the President on General Duties, the Vice President said this underscores the importance of deepening bilateral relationship with China, especially within the realm of financial and banking systems.
“As a nation, Nigeria remains committed to its alliances with those who have our best interests at heart and are willing to support our growth and development in a transparent and systematic manner,” Shettima emphasised.
He said it was impressive that Nigeria’s financial institutions are keying into these interventions for development, and commended First Bank for leading the charge in fostering stronger banking and financial collaborations between African banks and the China Development Bank.
In a remark, Wang Weidong, Vice President, China Development Bank outlined how financial cooperation plays a principal role in promoting modernization for China and Africa.
According to him, CAIBA has been promoting China-Africa trade, industrialization, and economic diversification. It has also been a positive approach to building cooperation, deepening investment and financial cooperation with Africa, and opening new prospects for China-Africa economic and trade cooperation”.
He assured that the association will support African countries to industrialize in a green and responsible way, develop and renew our land, and achieve inclusive, predictable, and sustainable growth and transition to prosperous financial innovation.
“CAIBA will use various ways, including significant loans, on-demand equity investments, and tripartite cooperation to support Africa’s industrialization. We encourage more use of cryptocurrencies in trade between African countries and China”, he added
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
