Beijing Business News

BRICS – Brazil, Russia, India, China … and South Africa (or BASIC?)

Denmark's Queen Margrethe (C) gives a toast to German Chancellor Angela Merkel (3rd L), U.N. Secretary General Ban Ki-Moon (L), China's Premier Wen Jiabao (3rd R), South Africa's President Jacob Zuma (2nd R), Mexico's President Felipe Calderon (R) and other guests during a dinner at the United Nations Climate Change Conference 2009 in Copenhagen December 17, 2009.

Denmark's Queen Margrethe (C) gives a toast to German Chancellor Angela Merkel (3rd L), U.N. Secretary General Ban Ki-Moon (L), China's Premier Wen Jiabao (3rd R), South Africa's President Jacob Zuma (2nd R), Mexico's President Felipe Calderon (R) and other guests during a dinner at the United Nations Climate Change Conference 2009 in Copenhagen December 17, 2009.

BRICS or BASIC? For many a year mere mention of the term BRIC has been guaranteed to set South African officials’ teeth grinding.

As the economic powerhouse of sub-Saharan Africa, South Africa has long dreamt of being a global player since the end of apartheid – and been frustrated by the fascination of so many economists with the big four emerging economies, the so-called BRIC nations (Brazil, Russia, India, and China), to the exclusion of South Africa.

Now, however, South Africa is daring to dream again, as is Jacob Zuma, its sometimes controversial leader, who just may have found a compelling geopolitical theme for his nine-month-old presidency.

Much has been made of the dramatic final evening at December’s climate change conference in Copenhagen when Barack Obama paid a call on the Chinese delegation, only to find that a meeting was already under way between Chinese, Brazilian, Indian, and South African leaders. Read the rest of this entry »

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100% Foreign Ownership of Nigeria’s Troubled Banks Now Allowed; Nigeria Seeks Foreign Investors for Troubled Banks

Lamido Sanusi, Governor of the Central Bank of Nigeria (CBN)

Lamido Sanusi, Governor of the Central Bank of Nigeria (CBN)

The Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi, said he would welcome foreign ownership, including complete takeovers, of five troubled banks seized by the government this month.

“We encourage foreign investors to have enough of a stake to control management,” CBN Governor Lamido Sanusi, installed this summer with a mandate to clean up Nigeria’s banking sector, told bankers and potential investors gathered at a hotel in London. “There is no law that stops foreign banks owning banks in Nigeria 100%.” In June, the CBN governor indicated that Nigeria would move to loosen rules limiting foreign ownership of Nigerian banks.

In mid-August, Lamido Sanusi announced a $2.6 billion bailout of five banks, recapitalizing them, and taking government control. Sanusi cited high nonperforming loans at the banks and blamed bad management for lax oversight of lending.

The London presentation on Friday was seen as a chance for Mr. Lamido Sanusi to explain the recapitalization, reassure international banking partners, and drum up interest in the five bailed-out banks. Read the rest of this entry »

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