Standard Bank of South Africa Limited (SBSA) and the New Development Bank (NDB) signed a Memorandum of Understanding (MoU) on Strategic Cooperation on August 31, aimed at cementing closer ties between the two banks.
The MoU will seek to foster closer cooperation between both banks, ranging from information exchange to investment banking. SBSA and the NDB aim to take advantage of this MoU to support their respective clients as they grow their businesses in Africa and other emerging countries. It was signed by Robert Cleasby, Global Head of Financial Institutions at SBSA and Paulo Nogueira Batista, NDB's Vice President for Economic Research, Strategy, Partnerships and Chief Risk Officer.
The Standard Bank Group is the largest African banking group by assets – over ZAR1.98 trillion (approximately $128 billion) as of 31 December 2015. It has operations in 20 African countries, including South Africa, and representative offices in key markets around the world. The Group has a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets with the Industrial and Commercial Bank of China (ICBC), which also signed a cooperation agreement with the NDB in June 2016.
The NDB is a multilateral development bank founded by the BRICS countries (Brazil, Russia, India, China and South Africa). It has $100 billion in initial authorized capital, with initial subscribed capital of $50 billion. The NDB is headquartered in Shanghai, China, and will open its first regional office in Johannesburg, South Africa. It is engaging in partnerships to support its goal to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries.
By partnering with SBSA, the NDB will be able to enhance its portfolio quality by using the SBSA's ability to evaluate local projects in the African region and other emerging countries.
Francois Gamet, head of Asia for Standard Bank Group and CEO Standard (Advisory) China said, "The New Development Bank has rightly been met with much enthusiasm. In mobilizing resources for infrastructure investment, it will have a profound impact on the BRICS countries' future economic development and modernization. It is abundantly clear that South Africa has a host of opportunities - particularly in renewable energy, and water and urban development. Standard Bank, as Africa's largest bank, has been involved in these areas for many years and can bring to this partnership our unrivalled understanding of the local environments and economic structures to ensure the NDB is successful in getting bankable projects off-the-ground."
South Africa is the economic powerhouse of Africa, leading the continent in industrial output and mineral production and generating a large proportion of Africa's electricity. The country has abundant natural resources, well-developed financial, legal, communications, energy and transport sectors, a stock exchange ranked among the top 20 in the world, and a modern infrastructure supporting efficient distribution of goods throughout the Southern African region. Not only is South Africa an important emerging economy, it is also regarded as the gateway to other African markets.
(Information supplied by Standard Bank)
