China’s drive into Africa’s financial services sector has taken a fresh turn, with China Development Bank entering a partnership with United Bank for Africa, one of Nigeria’s biggest lenders. The deal expands the Chinese bank’s ability to finance infrastructure projects in Africa and follows last week’s announcement that ICBC, another state bank, was buying a 20 per cent stake in Standard Bank for $5.56bn. CDB has not bought equity in UBA, which is listed on the Nigerian stock exchange, though the deal will help it expand in Africa. Given that CDB only recently acquired just under 3 per cent of Barclays, notes Lombard, the UK bank - and its 60 per cent owned South African subsidiary Absa - might feel a little queasy at the news.
