African businesses, spanning various industries, face numerous challenges when attempting to engage in international trade, especially when dealing with markets as intricate and fast-paced as China. The complexities include navigating stringent regulatory requirements, overcoming significant language barriers, and managing the nuances of currency conversion. These obstacles can often seem insurmountable to many African enterprises, limiting their potential to expand and compete effectively on a global scale.
However, initiatives such as the Standard Bank Africa-China Trade Solution (ACTS) are working to address these challenges and foster long-term growth for African businesses. One notable avenue through which Standard Bank is helping to bridge these gaps is by leveraging major international events like the China International Import Expo (CIIE), which is currently taking place from November 5 to November 10, 2024, in Shanghai. This significant event serves as a platform for African enterprises to showcase their products and connect directly with Chinese buyers.
Since its inception in 2018, Standard Bank has taken pride in representing a selection of export-ready African clients at the CIIE, which is recognized as the world’s largest import trade exposition. This ongoing commitment has enabled African businesses to overcome barriers and unlock new opportunities.
“CIIE represents a powerful opportunity for African businesses to gain direct access to one of the world’s most significant consumer markets,” says Andrew Robertson, Head of Business Enablement at Standard Bank Business and Commercial Banking. “Our strategic partnership with the world’s largest bank, Industrial and Commercial Bank of China (ICBC), gives us a competitive advantage in the Africa-China corridor, guided by our commitment to Africa as our home, and our continued efforts to drive her growth.”
This strategic collaboration has proven effective in addressing the various challenges African businesses encounter when entering the Chinese market. One of the key components of this success is the bilingual English-Mandarin support team at Standard Bank. This team plays a vital role in bridging the communication gap between African clients and potential Chinese partners, ensuring that business negotiations proceed smoothly and without the misunderstandings that can arise due to language differences.
In 2023, for example, African clients, with the support of Standard Bank’s bilingual team, successfully engaged in business transactions with Chinese importers during the CIIE. The wide array of exported goods included seafood, nuts, aloe vera skincare products, rooibos tea, wine, sesame, ginger, coffee, and more. This success story exemplifies the bank’s dedication to facilitating seamless cross-border business opportunities and promoting the growth of its export-ready African clients.
The impact of these engagements is not just anecdotal; the numbers tell a compelling story. Last year’s CIIE drew an impressive 400,000 registered Chinese buyers, resulting in deals that collectively amounted to $78.4 billion. This year’s event promises to expand on this success, featuring over 70 participating countries and international organizations, further amplifying its global reach. Notably, Standard Bank has been the only African bank to participate every year since the CIIE’s inception, reinforcing its dedication to showcasing the immense potential of African exports and fostering long-term growth for African businesses.
“By hosting clients on this global stage, Standard Bank is not just facilitating transactions but also enabling lasting partnerships and opening doors that can transform the trajectories of African businesses. We will leverage our deep understanding of our clients and our extensive African footprint and relationship with ICBC to help our clients turn trade prospects from CIIE into tangible growth opportunities,” Robertson adds.
Beyond the CIIE, Standard Bank is also deeply involved in promoting Africa-China trade through active participation in the China-Africa Economic and Trade Expo (CAETE). This biennial event, aligned with the Forum on China-Africa Cooperation (FOCAC) goals, plays an essential role in enhancing economic and trade collaboration between Africa and China. Through events like CAETE, Standard Bank showcases its sustained commitment to empowering African enterprises and helping them secure a stronger foothold in the global market.
One of the standout features of the 2024 CIIE is the targeted matchmaking and networking event co-hosted by Standard Bank and ICBC. This event aims to connect African businesses with pre-vetted Chinese buyers, streamlining the process of market entry and reducing potential friction. By carefully selecting participants and facilitating introductions, Standard Bank is making it easier for African enterprises to tap into the vast consumer base of the Chinese market.
In addition to matchmaking, Standard Bank provides comprehensive support to its clients before, during, and after the event. This support includes workshops on navigating Chinese trade regulations, currency risk management, and effective negotiation practices. Such initiatives ensure that African businesses are not only present at CIIE but are also well-prepared to make the most of the opportunity.
The benefits of participating in CIIE extend beyond immediate sales and transactions. For many African businesses, attending such events opens up possibilities for long-term partnerships, brand exposure, and an understanding of emerging consumer trends in China. This exposure allows businesses to tailor their products to meet the specific demands of the Chinese market, which is known for its discerning consumer base and preference for quality and authenticity.
Standard Bank’s commitment to fostering Africa-China trade reflects a broader vision of strengthening economic ties and ensuring that African businesses are not left behind in the global marketplace. The partnership with ICBC provides the leverage needed to navigate the complexities of the China-Africa trade corridor, making it easier for businesses to seize new opportunities and drive economic growth back home.
In conclusion, the CIIE, supported by initiatives like the Standard Bank Africa-China Trade Solution, represents more than just a trade expo; it is a gateway to transformative growth for African businesses. Through strategic partnerships, expert guidance, and a deep understanding of the needs of African enterprises, Standard Bank is playing an indispensable role in equipping these businesses to overcome international trade challenges and thrive on the global stage.
