Visi Money
TLDR:
- The Chinese market remains attractive for global investors, including multinational financial institutions with a presence in Africa, due to China’s ongoing reforms and opening up.
- China’s strengths, such as advanced technologies, a skilled workforce, a large consumer base, and low-cost production, have attracted international firms.
- China’s reform and opening up has facilitated the flow of goods and services, and its indigenous companies have contributed to global economic growth.
- The vast Chinese market presents opportunities for foreign agribusiness firms and allows for the development of local manufacturing in China’s trade partners.
- China continues to be strategically important for global and African economies, with banks like Absa Bank intending to establish a presence in the Chinese market.
- China-Kenya trade relations have boosted foreign currency flows into the Kenyan economy, and partnerships with Chinese institutions have helped finance projects and deepen involvement of Chinese businesses in Africa.
James Agin, managing principal of the Corporate and Investment Banking Division at Absa Bank Kenya PLC, believes that the Chinese market remains an attractive destination for global investors. He specifically mentions multinational financial institutions with a large presence in Africa. Agin notes that China’s ongoing reforms and opening up have unlocked opportunities for investors, including banks. China’s strengths, such as advanced technologies, a skilled workforce, a large consumer base, and an edge in low-cost production, have attracted international firms seeking to expand their profit margins.
Agin emphasizes that China has played a pivotal role in global trade, with its commitment to protecting intellectual property rights and its hastened institutional reforms. As a result, China has been able to attract foreign companies keen on expanding their profit margins. Agin also points out that China’s reform and opening up have facilitated the uninterrupted flow of goods and services. Moreover, Chinese companies have fostered global economic growth, with big Chinese brands playing a pivotal role in the global economy.
The vast Chinese market presents immense opportunities for the world, particularly given the higher spending power of Chinese consumers and China’s focus on inclusive economic development. Agin cites the example of Kenyan avocados, which have found new opportunities in the Chinese market. Additionally, China’s bilateral trade partners have been able to develop local manufacturing in their bid to boost exports of processed goods to China.
Agin highlights the strategic importance of China in global and African economies, stating that China still occupies a strategic place. This has secured the confidence of global institutional investors such as banks. Absa Bank, for example, intends to establish a footprint in the Chinese market. Agin views having an office presence in China as critical for enhancing trade between Africa and China. He further mentions that robust China-Kenya trade relations have boosted foreign currency flows into the Kenyan economy and injected vitality into key sectors like housing, energy, infrastructure, and manufacturing.
According to Agin, Absa Bank has partnered with the China Development Bank, which has helped the lender gain access to Chinese industries and investors, as well as enhance its capacity to finance projects. The partnership has also enabled Absa Bank to deepen and enhance the involvement of Chinese businesses in Africa. Last year, Absa Bank announced the establishment of a China desk staffed with Mandarin-speaking professionals to provide services to Chinese investors and strengthen trade relations with Kenya. Sensitivity to cultural nuances has been crucial in cementing ties with Chinese clients.
