Absa Group is going into the Chinese market with the establishment of a new non-banking subsidiary in Beijing, China.
The subsidiary is already functional, with an official inauguration planned for May 8, 2024, in Beijing.
A ceremony in S.A was attended by Enoch Godongwana, Minister of Finance, and Chen Xiaodong, Chinese Ambassador to S.A.
What The New Branc Would Offer
The Beijing office will offer local support to Chinese clients and stakeholders, facilitating transactions across Africa.
Absa is extending its operations through international representative offices in key markets to deliver in-depth knowledge of African markets.
“Our foray into this vibrant market opens up exciting prospects for fostering growth and prosperity for both Africa and China,” said Arrie Rautenbach, Absa Group CEO.
The China-Africa investment relationship has flourished over decades, with China emerging as the continent’s largest bilateral trade partner.
Absa’s move is informed by Chinese investments in Africa’s natural resources and infrastructure projects.
It intends to open up new opportunities with regional clients, said Charles Russon, CEO of Absa Corporate & Investment Bank.
“Having a physical presence in the region will not only establish our base there but also enable us to better serve our clients in this rapidly expanding market.”
Absa’s Global Presence
The number of Absa Bank branches around the globe downscaled from a total of 989 in the previous year to 919 as of 2022, according to data from Statista.
South Africa had the largest number of Absa Bank branches with 559. Kenya and Ghana completed the top three with 83 and 52 branches, respectively.
However, Mauritius had the most notable change, with a reduction of 31 branches since the period prior.