China has made inroads into the African economy with its biggest ever acquisition on foreign soil with the state controlled Industrial & Commercial Bank of China Ltd (ICBC) agreeing to buy 20% of the share of Standard Bank Group Ltd., Africa’s largest bank. This would be China’s largest foreign investment and this will make ICBC the largest bank in the world by market value at $330 billion, ahead of the Citigroup with its market value worth $208 billion. The Chinese President Hu Jintao is encouraging expansions in Africa to gain supply of commodities including oil. With an economy, growing at a rate of 11.5% in the third quarter of this year the Chinese President is seeking to line up natural resources to feed the fastest growing economy in the world. ICBC will pay on average 120.29-rand cash per common share, making total investment worth 36.7 billion rand or $5.6 billion. The Standard Bank has offices in 18African Countries and 21 other nations. It is expanding beyond South Africa where it earns most of its profits to tap increased trade in commodities and fees from investment banking. Ever since negotiations were on regarding ICBC’s acquisition of 20% of Standard Bank’s stake, the value of the South African rand has been rising. The Chinese investment is expected to herald further foreign investments for the country. Source:globeandmail Picture:dkimage