FirstRand partners China bank in Africa

JOHANNESBURG – South Africa’s No. 2 banking group FirstRand Ltd has partnered with China Construction Bank to help both companies win investment, corporate and project finance deals in Africa.

They said they would focus on providing joint advisory and structuring services to CCB’s Chinese clients looking to expand in Africa, African corporate clients and projects that may be of interest to CCB’s Chinese customers and FirstRand’s South African clients looking to do business in China.FirstRand, struggling with rising defaults and a recession at home, is stepping up its expansion into Africa under newly appointed CEO-designate Sizwe Nxasana.’CCB brings a formidable balance sheet to support RMB’s corporate finance, M&A and project finance teams, h Nxasana said in a statement.He said the tie-up would allow FirstRand Bank and CCB to participate in large transactions and investment opportunities expected to emerge in Africa, where resource-hungry Chinese companies are investing heavily.FirstRand is competing with Standard Bank, which is 20 per cent owned by Industrial and Commercial Bank of China, and which has used the tie-up to pursue deals aggressively in the rest of Africa.- Nampa-Reuters