Two key financial institutions in Nigeria and China, First Bank of Nigeria and China Development Bank (CDB) on Wednesday pledged to cooperate and work together to promote trade, industrialization and economic diversification across Nigeria and Africa.
The two financial institutions made the pledge in statements by their Chief Executives during the maiden China-Africa Interbank Association (CAIBA) Forum in Abuja to strengthen economic ties and investments between China and Africa.
The Forum co-sponsored by the FirstBank Group and CDB had the theme, “Joining Hands to Advance Modernisation and Strengthening China-Africa Trade, Industrialization and Economic Diversification.”
The Chief Executive Officer of FirstBank Group, Olusegun Alebiosu, said the Forum, which began since 2018 with a strategic partnership agreement between CDB and 15 African banks to deepen the China-Africa cooperation, has continued to wax stronger, breaking new grounds of cooperations and partnerships in various sectors of the economy.
He said CAIBA emerged in recognition of the growing trade, investments and developmental ties between China and Africa, adding that several Chinese companies operating across key sectors of the economy in many African countries have emerged and thrived as a result of the drive to grow the socio-economic and infrastructural developments in Africa.
Several businesses on the African continent, he noted, have primary Chinese trading partners, either as buyers of minerals, metals and other raw materials or suppliers of finished goods, such as electronics, phones, equipment, etc.
The pursuit of a stronger correspondent banking and financial systems between Africa and China, he said, was in the interest of both parties.
The theme of the Forum, he pointed out, underscores the need for stronger partnership between Africa and China as a panacea for driving further improvements in trade and the overall socio-economic transformation of the two regions.
The Vice President of CDB, Wang Weidong, thanked FirstBank for the opportunity offered by the Forum to dialogue and exchange ideas with other financial institutions in Nigeria and Africa on how to promote trade, investments and infrastructural development.
He acknowledged the place of financial cooperation in promoting modernization for China and Africa, adding that CDB has done a lot to promote China-Africa trade, industrialization and economic diversification.
Pledging to continue to leverage its experience and expertise in investment and financing cooperation with Africa to strengthen cooperation with FirstBank and other financial institutions in Africa, Weidong proposed to promote China-Africa financial cooperation and high quality Belt and Road cooperation in four areas.
These include aligning strategies to enhance communication to connect Chinese modernization, Belt and Road cooperation and the Global Development Initiative with the African Union’s “Agenda 2063” as well as the development strategies of African countries as well as capacity building, by utilizing the China-Africa Development Finance Special Fund to support infrastructure development in Africa, promoting the African continental free trade area, and improving China-Africa economic and trade cooperation.
“We will support Africa in moving up the global value chain. We will continue to utilize the Special Loan for African SMEs to enhance knowledge sharing and technology transfer to promote Africa’s industrialization and economic diversification,” he said.
Also, he said CDB would promote green development, by supporting African countries to industrialize in a green and balanced way, develop renewable energy and achieve inclusive, predictable and sustainable growth and transition.
In the area of promoting financial innovation, the CDB VP said the bank would use various ways, including syndicated loans, on-lending, equity investment, tripartite cooperation to support Africa’s industrialization.
In his remarks at the event, titled: “Building Stronger Banking Ties for a Thriving Africa” Nigeria’s Vice President, Kashim Shettima, described the Forum as a significant testament to the potential of Nigeria’s collaboration to build robust banking institutions that would cater to the diverse needs of Africa.
Amid the development challenges the country is currently grappling with, the VP who was represented by one hisbSoecial Adviser, Modibo Umar, said the Forum presented an invaluable opportunity for Nigeria to compare and exchange ideas towards solutions that would drive sustainable growth.
“Africa is on the cusp of a transformative era, and we are committed to forging strong, viable partnerships to accelerate the implementation of our development programmes,” he said.
He said the theme of the Forum aligned with the priorities of the present administration to boost trade, foster commerce, and diversify the Nigerian economy through well- structured, mutually beneficial partnerships.
This goal, he pointed out, cannot be achieved in isolation, but through collaborative efforts with trusted allies and partners, such as China, who share the country’s aspirations for a prosperous future.
Nigeria, he said, has always been open to strategic alliances that support her domestic growth goals, adding that the active engagement with the BRICS nations, even as a non-member state, jusrifies this position.
He said Nigeria has continued to witness growing flow of foreign capital from BRICS countries, amounting to about $1.27bn as of June 2024, from just $438.72m during the corresponding period in 2023.
This growth, he observed, was a reflection of the deepening of Nigeria’s development partnerships and existing mutual trust with BRICS nations.
Also, with a total trade value of N7.38trn as of June 2024, Shettima said China remained Nigeria’s number one trading partner, underscoring the deepening of the country’s bilateral relationship with China, especially within the realm of financial and banking systems.
At the plenary session organised as part of the Forum, development and economic experts, including Dr. Abiodun Adedipe- Founder & Chief Consultant BAA Consult, David Ofosu-Dorte- Senior Partner, AB & David Africa; Ugo (UgoDre) Obi-Chukwu, the Publisher of Nairametrics; Wole Adeniyi, CEO, Stanbic IBTC; Bamidele Abu, CEO, ABSA Nigeria Capital Markets, discussed existing opportunities for collaboration and partnership between trade and financial institutions in Africa and China.
