Ecobank establishes China desk

Ecobank Transnational Incorporated, a Pan-African Bank, has officially established a China Desk to promote international trade, infrastructure projects and investments between Africa and Asia.

The desk - located at Ecobank-Accra and managed by two employees each from Ecobank and the Bank of China - will offer on-hand business support and facilitate Chinese businesses operating on the continent. It is also aimed at easing the flow of Chinese loans for African projects.

The desk will provide advisory, wealth management and corporate client account services would to provide banking services to Chinese companies doing business in Ghana and also to Ghanaian businessmen who have or want to do business in China.

The establishment of the desk is the manifestation of an agreement between Ecobank and Bank of China in 2009 and the subsequent signing of a pact in July, 2010.

“The alliance between Ecobank and Bank of China will make us better able to meet the needs of all Africans and Chinese seeking to do business with the continent,” Mr. Arnold Ekpe, Chief Executive Officer of the Ecobank Group, told participants at the official launch in Accra.

He explained that the desk will offer a full range of banking services to Ghanaians, Africans and the Chinese, as it is expected to allow the two continents to overcome language and cultural barriers.

“Ecobank will systematically roll-out the services in its other branches on the continent once the challenges of the pilot are dealt with,” he remarked.

Mr. Albert Essien, Executive Director, Corporate Banking, Ecobank Group mentioned that the agreement will allow the Bank of China to cater for their clients in Africa using the Ecobank platform, while it also enables Ecobank to grow its China business.

He said the Ecobank will leverage on its wide regional coverage to ensure that Africa obtains the full benefit of the established relationship.

“The desk will provide a bouquet of banking services such as loans, project funding, and other support services to both Chinese and Ghanaian business persons whose activities have mutual benefits for Ghana and China.

“In the coming months, we will open similar desks in all 32 African countries that Ecobank operates in,” he stated.

Mr. Samuel Adjei, Managing Director, Ecobank Ghana, indicated that the significance of the desk is based on records available at the Ghana Investment Promotion Council showing that trade and investment between Ghana and China reached US$2.05billion last year, jumping from US$1.3billion in 2009.

“This is the first time trade between Ghana and any country has crossed the two-billion-dollar mark, and that is very significant for both countries.”

“Records at the GIPC also show that Chinese companies top the list of registered companies in Ghana in terms of foreign direct investment Foreign Direct Investment (FDI),” he said.

Mr. Adjei indicated that China’s FDI has also grown by 80 percent in recent years, with the scope of investment spanning mining ICT/telecommunication, manufacturing, tourism and agriculture.

He said the China Desk will therefore provide an opportunity for the Bank of China to provide more focused solutions for its clients in Ghana and also allow Ecobank to expand its business in China.

Mr. Gao Wenzhi, Economic Counsellor Chinese Embassy in Ghana, expressed the hope that the opening of the Desk will further deepen the relationship between China and promote trade between the two continents.

“Africa is a strategic market for China and we are anticipating huge volumes from this partnership,” he said.

Mr. Nicholas Sai, Head of Banking Supervision, Bank of Ghana who lauded the initiative, urged the two institutions to manage the risks prudently to prevent unforeseen challenges.

“I hope Ghanaian businesses will take advantage of the platform provided by Ecobank to close the trade-gap as much as possible,” he said.