China looking to invest in the development of Rwanda's Banking Sector
The country wants to enhance cooperation in currency exchanges and financial services.Pan Hejun, the Chinese Ambassador to Rwanda, told the New Times that China is looking to cooperate with financial institutions in Rwanda.
He said the $60 billion plan announced last year at Forum on China Africa Cooperation (FOCAC) is still on the table.
"The cooperation of financial institutions is one of the key plans. We already have examples like the International Commercial Bank of China (ICBC) which has formed strategic partnerships with some African banks, including Standard where it owns 20 per cent of the shares," he said.
He added that the $60 billion funding is the catalyst of China-Africa cooperation in boosting the financial markets.
"Banks in China will have various forms of cooperation to help the sector's capacity to lend and facilitate developmental projects," Pan Hejun noted.
As part of the plan, China will encourage Chinese financial institutions to provide financing and insurance support for China-Africa cooperation in energy, mining, agriculture, processing, manufacturing, shipping, metallurgy, construction, and information and communication technologies.
"The Chinese side will enhance cooperation in currency exchanges and financial services, and encourage both Chinese and African enterprises to invest and trade in local currencies. The Chinese side welcomes central banks of African countries to invest in China's inter-bank bond market and include RMB into their foreign exchange reserves," reads the action plan.
Sanjeev Anand, the Chief Executive of Rwandan bank BPR, welcomed the plan of having Chinese financial institutions on the ground, arguing that it would stimulate competition and vibrancy in the sector, although he said that more supervision and regulation will be required.