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Stanbic to partner with China in driving Zambia’s growth

Filed under: Business,Latest News |

Stanbic Bank Zambia has identified China as a major partner in driving Zambia’s economic and social growth.

China is one of Zambia’s biggest export destinations as well as one of the largest sources of imports. And over 500 Chinese companies operate in Zambia with a cumulative investment of over US$3 billion, resulting in over 50,000 jobs.

“Despite the distance between Zambia and China, the country’s relationship with Asian investors has continued to grow rapidly,” said Stanbic Head of Corporate and Investment Banking Helen Lubamba.

Speaking at the bank’s Chinese New Year celebrations, Ms Lubamba acknowledged the huge role China had played in sectors such as infrastructure construction, energy, tourism, agricultural processing, creating more opportunities for socio-economic development of Zambia.

“As a bank we see ourselves as a major partner in China’s plans of increasing its investment in Zambia’s construction, production and manufacturing sectors, through the provision of the much-needed capital,” she said.

In 2015, the Chinese government pledged to increase investments in the Zambian economy to over US$3 billion. Chinese investments in Zambia are primarily resource seeking and have been concentrated in the mining sector.

There are investments in construction, trading manufacturing sectors too. The growth of these investments has been steady over the year and indications are that they are likely to remain that way.

“Stanbic is part of the Standard Bank Group which is the largest bank in Africa, whether you measure it by balance sheet, by assets, by liabilities, by profits; by whatever ratio, we are the largest bank in Africa. What is also important is that the Standard Bank Group is part of Industrial and Commercial Bank of China (ICBC) which owns 20 percent of Standard Bank Group,” said Ms Lubamba.

She added that the ICBC identified Africa as an important growth market long before it was fashionable for global banks to do so.

“ICBC and Standard Bank are exploring new business opportunities to expand their co-operation into new areas. We are working together to bring to the Zambian market new solutions to challenges in accessing finance for big projects,” revealed Ms Lubamba.

Standard Bank and ICBC have worked together on a wide range of initiatives, all with a strong focus on supporting infrastructure investment and industrial development in Africa, and on growing trade and investment flows between China and Africa.

Standard Bank, ICBC and the China Development Bank have been co-financing the Kabompo hydro project in Zambia, where Sinohydro was appointed as the civil engineering contractor.

“In December 2016, Stanbic Bank Zambia launched a new construction banking service to finance building projects in the construction sector in which Chinese firms are major players,” she said.


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