SocGen to ease African trade

French Finance Minister Pierre Moscovici said during a recent trip to Hong Kong that France and China have a mutual interest in making the Chinese currency more heavily used in trade in Africa.

In fact, Paris has been keen to build itself into a financial hub for yuan settlements in the eurozone and a bridge between Europe and Africa for Chinese companies.

Besides the strength of its network, SG also provides advisory services for Chinese companies in Africa that are often exposed to regulatory, legal and foreign exchange risks, Liu said.

"For example, many African nations have very tight foreign exchange controls. Many countries only accept guarantees issued by local banks, and some require all documents to be in French. SG's expertise and local knowledge can give Chinese corporates a valuable head start in unfamiliar markets," he said.

France' historical link with Africa is viewed as a key advantage in deepening the Sino-French strategic partnership. Widening the scope of Sino-French cooperation in Africa was also emphasized during French President Francois Hollande's visit to China in April.

Experts said that the intention of Chinese and French leaders to deepen cooperation in Africa will offer enterprises on both sides a greater incentive to jointly seek business opportunities in the region.

"Instead of seeing China as a threat or a concern, French enterprises are more and more likely to see an opportunity," said Isabelle Fernandez, director of UBiFRANCE's office in China, an organization that promotes French business internationally.

"In fact, it will be a win-win game to play as French and Chinese companies have complementary roles to play in the region's development," she said.