The Silk Road International Bank was officially launched to leverage the Belt and Road Initiative to upgrade China-Africa cooperation

(January 18, 2017) On January 18, the first full-license joint venture bank between China and a local government under the Belt and Road Initiative - Silkroad International Bank (SIB) - officially commenced operations in Djibouti City, the capital of the Republic of Djibouti. This is the first time that a Chinese enterprise has obtained a full banking license on the African continent, and its commencement of operations will help accelerate the pace of Chinese enterprises going global and contribute to Djibouti's goal of becoming an "East African financial hub" sooner. The establishment of the first joint venture bank also lays a solid foundation for financial cooperation between China and Africa.

The President of the Republic of Djibouti, Ismail Omar Guelleh, attended the inauguration ceremony and presented the bank with its license. The Minister of Finance of the Republic of Djibouti, Elías Mussa Dahale, Chairman of the Board of Directors of the Silk Road International Bank, Ahmed Osman, Governor of the Central Bank of Djibouti, Ahmed Osman, Commercial Counselor of the Chinese Embassy in Djibouti, Ge Hua, Deputy General Manager of the China Merchants Group and Chairman of Silk Road Yishang Information Technology Co., Ltd., Hu Jianhua, and General Manager of the Silk Road International Bank, Yin Long, also attended the inauguration ceremony.

At the inauguration ceremony, the Silk Road International Bank launched the first batch of Zebra Cards with African style, with the President of the Republic of Djibouti becoming Card No. 001 and the Prime Minister of the Republic of Djibouti becoming Card No. 002.

"Belt and Road" New Financial Practices

"This is a concrete manifestation of China's long-term support for Djibouti's infrastructure development in the financial sector, and the best example of China's government developing relations with African countries based on mutual respect and equality and mutual benefit. The Silk Road International Bank can provide excellent financial services and product experiences for Djibouti and local foreign enterprises, especially Chinese enterprises in Djibouti. Improving Djibouti's financial infrastructure will help Djibouti achieve its goal of building an East African financial center," said Elías Moussa Daoualeh, Minister of Finance of the Republic of Djibouti and Chairman of the Board of Directors of the Silk Road International Bank.

Silk Road International Bank is a pioneering effort by Chinese enterprises to integrate deeply into the cooperation along the Belt and Road, particularly through the use of new technologies and market-oriented approaches, and to advance the Belt and Road Initiative in the financial sector in accordance with the principle of "consultation, co-construction, and sharing."

"For underdeveloped regions in the world, especially in Africa and South Asia, new financial technologies such as blockchain technology will bring huge historical opportunities, no less than the revolutionary role of 3G communication technology in the information industry. We hope to help African countries issue digital currencies within two years, effectively addressing government tax infrastructure, controlling money laundering and bribery, promoting financing, promoting currency circulation, and better reflecting the spirit of "Belt and Road" initiative of joint consultation, joint construction, and shared benefits."

Silk Road International Bank will become the bank that manages the government's main income and expenditures in Djibouti, and will also be the main bank for trade settlement and financial transactions of Chinese-funded enterprises in the local area. Based on advanced information technology and financial management experience, Silk Road International Bank will become Djibouti's first high-tech bank with modern information systems, namely "e-bank". It will provide a comprehensive set of financial solutions for bilateral trade between China and Africa, as well as China's investment in Africa. In addition to traditional banking services such as issuing cards and deposits and loans, it also provides financing, investment, securities, bonds, private banking and other services.

After its official launch, the Silk Road International Bank can attract large Chinese enterprises' deposits in the local market, and Chinese enterprises can also borrow money using domestic assets as collateral to meet the growing needs of their businesses.

The PPP model is driving the upgrade of Sino-African cooperation.

It is understood that the Silk Road International Bank was jointly initiated by the Ministry of Finance of Djibouti, Silk Road Yishang Information Technology Co., Ltd., and Chinese enterprises such as the China Merchants Group, and was approved by the Djibouti Central Bank as the 13th commercial bank in Djibouti.

The Belt and Road Initiative covers over 60 countries with a population of 4.4 billion, many of which are developing countries, with a combined economic output of around $2.1 trillion. China attaches great importance to the participation of African countries in the Belt and Road strategy and looks forward to African countries gaining more benefits from it. The mode of cooperation between China and Africa is also transforming from government aid-based to enterprise investment and financing cooperation-based.

According to the National Development and Reform Commission (NDRC) in recent years, China will establish a PPP (Public-Private Partnership) cooperation mechanism for the Belt and Road Initiative (BRI) to promote the PPP model in countries along the route. The Silk Road International Bank is a product of the "win-win cooperation model" between China and African countries under this model. The economically underdeveloped and infrastructurally weak African countries need China's support, while China, which is in the new stage of industrial development and upgrading, also needs the market with a population of over 1.1 billion in Africa.

Djibouti, located on the west coast of the Gulf of Aden in northeastern Africa, has a unique strategic position and is a key point on the Maritime Silk Road's western line, which can radiate to the East African, Middle Eastern, Red Sea, and western coast of the Indian Ocean regions. Djibouti has a stable political situation and stable exchange rate, and it is committed to becoming the financial center of East Africa, which provides a broad prospect for the Silk Road International Bank.

"Our positioning for Silk Road International Bank is the same as that of HSBC when it was established in Hong Kong 150 years ago - to promote trade development. Our goal is to become the largest international and transactional bank in Djibouti within five years and the largest card issuer in East Africa."

In the process of forming the "Belt and Road" ecosystem, Chinese banks have been actively expanding overseas to provide services for Chinese enterprises and seize new business opportunities, including major state-owned banks and policy banks. As a commercial bank, the Silk Road International Bank's participation has made China's overseas banking sector more diversified.

The establishment of the Silk Road International Bank means that Chinese enterprises are moving from investment to capital level in going out, and the construction of the Belt and Road Initiative is moving to a higher level. It explores new solutions for financial cooperation to solve the problems facing the world and regional economies, guided by new technologies and achieved through market-oriented means to achieve joint development with local areas and help the Belt and Road Initiative bring greater benefits to people of all countries.

Timeline of Silk Road International Bank:

On July 28, 2016, Silk Road Billionaire Company signed a cooperation agreement with the Ministry of Finance of Djibouti in Beijing, announcing that they would jointly establish the Silk Road International Bank.

On September 28, 2016, the Central Bank of Djibouti issued a provisional license to the Silk Road International Bank, allowing the bank to conduct business in Djibouti.

On November 16, 2016, the Silk Road International Bank officially announced its establishment in Djibouti, where multiple shareholders signed a cooperation agreement.

On January 18, 2017, the Silk Road International Bank officially commenced operations.