RMB extends partnership with China Construction Bank

Rand Merchant Bank (RMB) has announced the extension of its longstanding partnership with China Construction Bank for another five years, marking a significant milestone in their collaboration. Since the inception of the partnership in 2009, RMB has facilitated over R20 billion in trade and provided over R6 billion in financing to Southern African companies. To shed light on the success and future prospects of this partnership, Erwin Pon, Head of RMB Asia, joined CNBC Africa for an exclusive interview. Pon emphasized that the success of the partnership is evident in the tangible results, with over R20 billion in trade and investment being facilitated through the collaboration. This has greatly supported the flow of investments and trade between China and Africa, leveraging the strengths of the two financial giants. The partnership has been instrumental in supporting various Chinese companies, including established entities like Huawei and Hisense, as well as emerging businesses venturing into the African market. One of the key focus areas of the partnership has been facilitating infrastructure and renewable energy projects in Africa. Through leveraging export credit agencies and expertise in project financing, RMB and China Construction Bank have been able to provide crucial financial support to these projects. Additionally, the use of Renminbi for settlements has gained traction, offering a more efficient and cost-effective alternative to the traditional U.S. dollar transactions. Despite the challenges posed by the COVID-19 pandemic and reports of a slowdown in Chinese infrastructure investments, Pon remains optimistic about the future of trade and investment between China and Africa. He highlighted a growing interest from Chinese companies in investing in Africa, particularly in sectors like manufacturing, industrial, and renewable energy. The extended partnership between RMB and China Construction Bank signifies a continued commitment to fostering economic growth and collaboration between the two regions. Looking ahead to the next five years, Pon shared insights into the strategic focus areas for the partnership. With a keen emphasis on leveraging new technologies and digital solutions, such as AI and FinTech, the banks aim to enhance efficiency and service delivery for their clients. Additionally, tapping into China Construction Bank's extensive network of branches and leveraging their expertise will contribute to the success of future ventures. As Africa celebrates the 25th anniversary of its partnership with China and recent engagements like the BRICS summit, there is a renewed drive to support business initiatives with the continent. Pon expressed confidence that the extended partnership will bring about enhanced systems, efficiency, and overall growth for clients on both ends, showcasing a promising outlook for trade and investment in the years to come. In conclusion, the partnership extension between RMB and China Construction Bank underscores a commitment to fostering economic cooperation and facilitating sustainable development in Africa. The collaborative efforts between the two financial institutions are poised to create new opportunities, drive innovation, and contribute to the growth of trade and investment relations between China and Africa.