Standard Bank of South Africa Limited (SBSA) and the New Development Bank (NDB) yesterday signed a strategic cooperation agreement aimed at cementing closer ties between the two banks.
The new non-exclusive general business cooperation agreement will seek to foster closer cooperation between both banks, ranging from information exchange to investment banking. SBSA and NDB aim to take advantage of this cooperation agreement to support their respective clients as they grow their business in Africa and other emerging countries.
NDB is a multilateral development bank founded by the BRICS countries (Brazil, Russia, India, China and South Africa). NDB focuses on infrastructure and sustainable projects in BRICS and other emerging market economies and developing countries. NDB is headquartered in Shanghai, China and the first regional office of the NDB will be opened in Johannesburg, South Africa.
The initial authorised capital of the NDB is USD 100 billion and initial subscribed capital is US$50 billion. Membership of the bank will be open to members of the United Nations over time.
The Standard Bank Group is the largest African banking group by assets – over R1.98 trillion (approximately US$128 billion) as at December 31, 2015. It has operations in 20 African countries, including South Africa, and representative offices in key markets around the world. Standard Bank customers benefit from its knowledge and expertise in emerging markets, coupled with its global outlook.
South Africa is the economic powerhouse of Africa, leading the continent in industrial output and mineral production and generating a large proportion of Africa’s electricity.
The country has abundant natural resources, well-developed financial, legal, communications, energy and transport sectors, a stock exchange ranked among the top 20 in the world, and a modern infrastructure supporting efficient distribution of goods throughout the southern African region. Not only is South Africa an important emerging economy, it is also regarded as the gateway to other African markets.