Stanbic Bank Ghana joined its parent company, Standard Bank, to enhance Africa’s capability to export to China by sending clients from Ghana to participate in this year’s China-Africa Economic and Trade Expo (CAETE) in Changsha, China. The expo, which aims at fostering direct business cooperation at the sub-national level., took place from June 29 to July 2, 2023.
Aurelia Baaba Ofori Odame, Head, Africa China Trade Banking at Stanbic Bank Ghana spoke on the importance of the bank’s participation in the expo. She said,
“The expo has consistently been pivotal in promoting China-Africa cooperation, facilitating economic exchanges, and boosting trade volumes over the years. Even when we couldn’t facilitate physical participation of our clients in the last two episodes due to covid-19 restrictions, we organised virtual matchmaking sessions to create opportunities for Ghanaian traders who want to access China. These are tangible demonstrations of our persistent strategy to support our clients through creating a focused trade ecosystem around the Africa China corridor. As a bank committed to driving Ghana’s growth by linking individuals and businesses to opportunities, we are positive the benefits garnered from expo will give practical force to the local businesses’ growth narrative”.
CAETE is a biennial event, co-sponsored by the Ministry of Commerce of the People’s Republic of China, and the People’s Government of Hunan Province. CAETE was launched in 2019 to deliver on the Forum on China-Africa Cooperation’s (FOCAC) commitment to improving the balance of trade between Africa and China. CAETE works to increase the import of African goods and services by building new platforms to promote direct business co-operation at the sub-national level. The 2019 and 2021 expos resulted in the signing of 216 projects, accounting for over US$43 billion in new trade with Africa to date.
The CAETE supports the trade promotion ambitions of China-Africa Cooperation Vision 2035, announced by Chinese President Xi Jinping in his address to the Eighth Ministerial Conference of FOCAC in Senegal in 2021. In this vision China aims to achieve USD 300 billion in total imports from Africa by 2024. President Xi explained that this would be achieved by opening ‘green lanes’ for African agricultural exports to enter China. China would also speed up inspection and quarantine procedures while increasing the number of zero-tariff products able to enter China from least developed countries with diplomatic relations with the PRC.
Standard Bank’s Africa-China trade ability connects African clients to an extensive network of vetted export partners and reputable Chinese importers. This is underpinned by a strong transactional offering and an extensive range of trade and working capital finance solutions. While broader Most Favoured Nation (MFN) produce protocols and import tariffs are negotiated between governments at the official level, Standard Bank and ICBC play an important role identifying and communicating the commercial rationale of trade opportunities that the responsible governmental authorities in Africa and China can unlock. Certainly, Standard Bank’s presence across Africa and ability in China can leverage client insights along with producer association and trade promotion council networks. Myburgh believes that “this insight helps officials on both continents understand how Africa presents a competitive alternative for many of the products that China currently imports from South East Asia, South America or Australia.”
This year’s CAETE held under the theme Common Development for a Shared Future, takes place in the new purpose-built Changsha International Convention and Exhibition Centre.
