BankofChina(Zambia)Ltd.headquartersinLusakaDERRICKSILIMINAChina-Zambiadiplomaticrelationshavealonghistorydatingbacktoasearlyas1964,andmanycooperativemilestoneshavebeencelebratedalongtheway.Onethatsymbolizesthefriendshipandunitybetweenthetwonationsistherecenttwo-decadeanniversaryofBankofChina(Zambia)Ltd.(BOC(Z)Ltd.).
Asafully-licensedbankbranch,BOC(Z)Ltd.isheadquarteredinLusakaandprovidesbothcorporateandpersonalservices,includingcreditfacilities,accountservices,internationalsettlements,exchangeservicesandChineserenminbi(RMB)services.
BOC(Z)Ltd.’sexistenceinthecountryhaswithstoodthetestoftime,anditisforthisreasonthatthefinancialinstitution’squalityserviceshaveenhanceditsclientelenetworkbase.ThishasthereforehelpedbolsterChina’sforeigndirectinvestments(FDIs)inZambiawhichhasaccumulatedto$2.6billion,withmorethan500Chinesecompaniesinvestinginvarioussectorsofthelocaleconomy.
Pioneeringservices
Establishedinlate1997,BOC(Z)Ltd.isthefirstwholly-ownedsubsidiaryofBankofChina(BOC)inAfrica,andalsothefirstChinesefinancialinstitutiononthecontinent.
“ThereisaverygoodrelationshipbetweenChinaandAfricaandbetweenChinaandZambiainparticular.Therefore,wehaveseentheexchangeofbilateraltradeandeconomictreaties,andasabankwethinkitcontributesandfacilitatessuchexchange.ThatiswhyBOCchoseZambiatobeourfirstbaseinAfricatwodecadesago,”ChineseAmbassadortoZambiaLiJietoldChinAfrica.
FinancialbankssuchasBOCfindZambiaaviableinvestmentdestination,asitenjoyscomparableenvironmentforcooperationthankstothesupportoftheZambianGovernment,aswellasthepositivementalityofthepeoplewhoarealignedtodevelopmentandopentocooperation.ThesevirtuesmakeZambiaoneofthecountriesinAfricatobeattractivetoChineseinvestors.“Thisisveryimportantforfinancialinstitutionstomaketheirdecisionstoestablishinaforeigncountry,”saidLi.
InregardtoBOC’ssignificantinfluenceandreputation,ascomparedtoothercommercialbanksinthecountry,AmbassadorLisaidthebankisattractingmoreChineseinvestmenttoZambiabecauseofthebackgroundofChinesecultureandtheincreasingbilateralactivities.
HesaidtheuniqueservicesprovidedbyBOChavebornefruitastherehasbeenanincreaseinthenumberofChineseinvestorsinZambia.
InabidtopromoteChina–Zambiaeconomicrelations,theChineseenvoyfurthersaid,“Wehavebeenveryinstrumentalinfacilitatingimportsandexports,inparticularoverthepast10years,becauseoftheincreaseininvestments.Wearealsofacilitatingandprovidingservicesthroughthoseinvestmentsintermsofsettlementsandtrade-relatedfinancing.”
BOC(Z)Ltd.ManagingDirectorWangQiTradinginRMB
TheBOCrankedfifthintotalassetsamongthe17banksinZambiain2016,andinthelastfewyearsithasgrantedbillionsofdollarsworthofloanstolocalmining,energy,infrastructure,publicutilitiesandsanitationprojects.
ZambianVicePresidentInongeWina,whileattendingtheZambia-ChinaWeekinChinarecently,hailedBOCandawardedthebankacertificateofappreciationforitscontributiontoZambia’sdevelopment.
Andrecently,China’scentralbankhasappointedBOCtoclearRMBtransactionsinZambia,whichisaimedatChinesebusinessesoperatinginthecountryaswellasZambiansimportinggoodsfromChina.
BOC(Z)Ltd.ManagingDirectorWangQitoldChinAfricathatthismovewillhastenbilateraltradeforbothcountriesandhelpcreatelinkagestobenefittheireconomiesandfurtherstrengthenthefriendlyties.
Wangsaidhebelievedthatitwasthebank’sdutytolowerthecostofcurrencyexchangearisingfromtheincreasingeconomicactivitiesbetweenthetwonations.
“SowebroughtinRMBsothatZambianscouldtradeeasilywithChinainsteadofusingdollarsorpoundsandchangethembacktoRMB.”
Wangsaidtheformertransactionpracticemeanshighercoststotradersandcustomers.SobytradingdirectlybetweenZambianandChinesecurrencies,itwillhelpreducetheexchangecostsforbothimportersandexporters.Thismovefurtherreducesthecostofgoods,sothatthepubliccouldpaylessintermsofgoodsimportedorexportedbythetwocountries,hesaid.
LookingaheadtothecomingSeptember,whentheBeijingSummitoftheForumonAfrica-ChinaCooperationistobeheldinBeijing,WangsaidthesummitwillbeveryimportantbecausebothChinaandAfricahavereallyseenrapidanddiversifiedeconomicgrowthlately.
“IamsuretheZambianGovernmentwillmakefulluseoftheopportunitytoshowcaseZambiatotheChinesebusinesscirclesandincreasetheirconfidenceinthecountryastheirinvestmentdestination,”saidWang.
**ReportingfromZambia
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