In yet another confirmation of the growing influence of China on Africa, a day-long China-Malawi Business Forum is underway in the administrative capital, Lilongwe hosted by Africa’s largest bank by assets Standard Bank.
The bank itself is 20% owned by the Industrial and Commercial Bank of China (ICBC), the world’s largest state-controlled bank.
Standard Bank Malawi Chief Executive Officer, the Zimbabwean-born Andrew Mashanda said the forum today aimed at strengthening and deepening business relations between the two countries.
He said the forum gives the bank a platform to showcase its expertise in handling business and investments involving the two countries.
Mashanda said Standard Bank’s expertise on China is backed by the synergy and deep pool of resources the bank taps from its global network that includes Asia where Standard Bank is represented in Shanghai and Beijing through its partnership with the Industrial and Commercial Bank of China (ICBC). The ICBC holds 20 percent of the Standard Bank Group.
“As a global leader in commodity-related financial services, Standard Bank is well-positioned to realize significant opportunities for our clients in this market. We consider ourselves as the “Chinese experts” because of the synergy and deep pool of expertise we tap from our global network that includes Asia,” he said.
He said Standard Bank is committed to move Malawi-China business forward through its innovative products and services.
The forum has attracted speakers from Reserve Bank of Malawi, Ministry of Trade & Industry, the Malawi Investment and Trade Centre (MITC), Chinese Embassy and Standard Bank.
Malawi-China trade date back to 2008 when the two countries signed a Memorandum of Understanding covering industry, trade and investment.
Under the agreement China made a commitment to help in increasing the productive capacity of Malawi in tobacco, cotton, mining, forestry, fertilizer production and in processing hides and skins, among others. In turn, Malawian exports enjoy preferential access to China’s markets, which in turn provides incentives to Chinese businesses investing in Malawi.
The forum is an indicator of the strength of China’s foray into Africa at a time the West is gradually losing its grip on the continent over antagonistic and controversial aid policies. Many African government are also loathe of the West’s deep probity and intrusion into their affairs, but the West usually attaches such measures as collateral for its aid to poor African states.
President Arthur Peter Mutharika has warmed up to China for the support the Eastern power is giving to Malawi. China is behind major infrastructure projects in Malawi such as roads, universities, hotels and a modern Parliament building for the country. A Chinese state-of-the art stadium, expected to become the new home of the Flames has stood up in Lilongwe in Area 47 while a new airport by China is on the cards at Chileka, where the current airport stands in disrepair.
