Trade and Industry

Tuesday, 22 July 2008

Towards a New Partnership: China in the SADC Banking Sector

  • Year: 2008
  • Organisation: TIPS
  • Author(s): Memory Dube
  • Countries and Regions: China, Southern African Development Community (SADC)

This paper uses as its point of departure the recent demise of the world's largest financial institutions that set in motion the current global financial crisis. These financial institutions look set to re-evaluate their model of global finance and it is anticipated that western finance will be dramatically transformed in the near future (Meyer, 2008). The void created by the fall of these financial powerhouses is expected to be filled in by private financial institutions from China and Japan. The focus in this paper is on China, however, because of its aggressive drive to acquire markets as well as resources from Africa. Over the years, China has come to be touted as the new economic powerhouse on account of its economic growth and its share in world trade, despite its developing country status. China's emergence in the global economy is also linked to enhanced Sino-African relations, particularly in the context of political and economic links.