China’s acquisition of a 20% stake in Standard Bank, Africa’s largest financial services company, could be the beginning of an exciting new pattern of partnership with Africa. Tom Nevin reports.

It was only a matter of time before China began laying the financial foundation to its courtship of Africa. In a move that came out of the blue, the giant Industrial and Commercial Bank of China (ICBC) took a 20% stake in the Standard Bank of South Africa, Africa’s biggest financial services company. ICBC’s R36.7bn ($5.2bn) buy-in is China’s biggest overseas investment to date and by all accounts the first of many.

In the past decade, China has invested some $40bn in resources-based acquisitions in emerging economies, mainly minerals and oil, and to a lesser extent in infrastructure, agriculture and manufacture.

Africa’s trade with China has been growing at 40% a year since 2001 when it stood at $4.5bn. Last year China’s total bilateral trade with Africa amounted to $50bn.