African banks, including Rawbank, the first banking institution in the Democratic Republic of Congo (DRC), and China Development Bank (CDB), have signed an agreement for the establishment of the China-Africa Inter Bank Association in Beijing (CAIBA)
Rawbank, the only Congolese bank to have been selected as a founding member of the cooperation, has therefore assumed a leading role in the Congolese banking sector alongside international and African banks. The agreement marks the official establishment of the first China-Africa financial cooperation multilateral mechanism.
President of China, Xi Jinping said the deal is aimed at enhancing China-Africa relations and promoting “10 principal cooperation plans” between his country and the African continent. He noted that eight major actions of China-Africa cooperation were planned in order to advance the partnership.
Due to an existing deficit in meeting the funding needs of African countries with regard to industrialization, infrastructure connectivity and poverty alleviation, a closer collaboration between Chinese financial institutions and African countries was decided.
Within this context, the China Development Bank (CDB), represented by its President, Mr Hu Huaibang, and peer financial institutions in Africa, jointly established the China-Africa Inter Bank Association. The Association has been described as a concrete move in achieving higher levels of development for all involved.
Rawbank was selected based on its leading position in the banking sector for more than 16 years. It is henceforth one of the 16 founding members of CAIBA, alongside international and Pan-African banks such as Standard Bank, Absa and Attijariwafa Bank, among others.
Together with the CDB, CAIBA will, in the long term, enhance financial cooperation between all member banks to advance partnerships in various relevant sectors.
“This agreement is proof of CDB and Rawbank commitment to strengthen the economic ties and investments between China and African countries, as part of the Forum on China-Africa Cooperation (FOCAC),” Rawbank said in a statement.
As the Chinese government’s financial institution for development, the CDB has been active in collaborating with Africa. Since the launch of a funding cooperation with Africa in 2006, the CDB has continually widened its partnerships with a number of financial institutions in various African countries by investing and funding over $50 billion in close to 500 projects in 43 African countries.
The CDB encourages Chinese enterprises to invest in Africa and assists African local governments in solving problems such as funding deficits and infrastructure construction delays. The lender stated that it strives to develop economic and commercial cooperation, increase employment and spur economic growth across Africa.