(Ecofin Agency) - The Corporate and Investment Banking arm of South African Absa Group Ltd. plans to open an office in China as part of an expansion plan that also targets other parts of Asia and the Middle East.

“Next year, we will be seeking strategic approval from our board for an on-the-ground presence in China,” Charles Russon, the subsidiary’s CEO said.

Let’s note that Absa’s strategy aligns with that of other South African banking groups which have clearly demonstrated Asian ambitions. Standard Bank Group, which is 20% owned by Industrial and Commercial Bank of China, said it plans to generate more than $147 billion a year from bilateral trade between Africa and China. Similarly, Rand Merchant Bank, one of the subsidiaries of the First Rand Group, has a representative office in Shanghai and has entered into partnerships with several Chinese banks, while the Nedbank group agreed in 2013 to cooperate with Bank of China.

Absa Group is already a financial intermediary in Africa for major Chinese groups such as Huawei, which is one of the leading equipment manufacturers in the African telecommunications sector. As part of the expansion in Asia, the number of investment services available is expected to increase. For the time being, no details have yet been given for this purpose.

Idriss Linge