The director of the Bank of China – Branch in Luanda intends to base the institution’s growth strategy on trade between the two countries, considering that the greater the trade, the better the business opportunities, state newspaper Jornal de Angola reported.
The Angolan branch of the Bank of China, which started operating in early June, is currently focusing on business banking, but intends to start retail operations with offers targeted at private customers, the bank told the newspaper.
The current leadership’s strategy is to establish it as a commercial bank for business customers and gradually expand market share based trade between Angola and China, which last year totalled US$15.579 billion.
In 2016, Angola sold products (mainly oil) worth US$13.818 billion (-13.54% year-on-year) to China and bought products from Chinese companies worth US$1.761 billion (-52.69%).
The Chinese bank revealed that it does not plan to include Angolan capital in the branch, for now, presenting itself as a branch of a Chinese financial institution, and not a bank under Angolan law, which requires that most of the capital be Angolan.
The Bank of China’s branch said that since the start of post-civil war reconstruction in 2002, Angola has achieved “impressive” economic performance, making it one of the most important economies in Africa.
According to the bank, although the Angolan economy is going through a difficult time due to the impact of the oil crisis, these obstacles are temporary.
The Bank said it focuses on the process of implementing economic diversification policies in order to overcome excessive dependence on oil, which it says is “the right direction for development.” (macauhub)