Djibouti is a member of the World Trade Organization, the International Monetary Fund, the African Union and Common Market for Eastern and Southern Africa and has enjoyed a good momentum of economy growth. Besides, Djibouti has adopted an open economic policy, which allows capital to flow freely and is also open for foreign capital investment. With a strong overseas reputation, it serves as an ideal platform for the Group to establish its NGSN system in the country. In addition, Djibouti is a key traffic hub connecting the three continents, namely Europe, Asia, Africa, and also a key node in the China’s “One Belt One Road” strategy. With the influence of Djibouti in east Africa and the middle east region, trading, logistics and financial services sectors in Djibouti and even China will be developed comprehensively.
Mr. Luo Feng, Executive Director and Chairman of the Group, said, “The agreements signed with the Djibouti Ministry of Finance and SRIB mark a new milestone for the Group’s business development in Djibouti and Africa, and also prove that our self-developed cross-border settlement and clearing system has gained unanimous recognition from the partners including the government of Djibouti. The cooperation will provide more convenient RMB clearing and settlement channels for Chinese enterprises, individuals and other organisations using RMB, while also offering a more comprehensive and highly effective financial infrastructure to Djibouti citizens and gradually expanding to other countries in Africa. In addition, China’s implementation of the ‘One Belt One Road’ strategic directive has increased demand for RMB clearing and settlement services in countries along the anticipated route, thus bringing bright market prospects for the NGSN system. Looking ahead, the Group continues to explore opportunities for cooperation with the banks and financial institutions in areas along the ‘One Belt One Road’ and expand the global coverage of its own NGSN system.”
The Cooperation Agreement with The Djibouti Ministry of Finance
The Djibouti Ministry of Finance is the central administration body of the Republic of Djibouti and is responsible for the management of economy and finance in Djibouti. Pursuant to the agreement between the Group and the Djibouti Ministry of Finance, The Group will provide diversified and innovative financial products to the Ministry of Finance in order to develop Djibouti as a financial center targeting east Africa and Africa, and provide strong financial support to the implementation of the “One Belt One Road” strategy in Africa. The Djibouti Ministry of Finance agrees to provide relevant supporting policies and necessary guidance to the Group for the establishment and operation of the next generation settlement network of the Group in the Republic of Djibouti, as well as leading and promoting the formation of the financial infrastructure network of the Group in a steady and orderly manner.
The Cooperation Agreement with SRIB
SRIB established by China Merchants Group, IZP group, Silk Road E-merchants and the Republic of Djibouti, is the 13th commercial bank approved by Djibouti’s central bank. It is also the first commercial bank being granted with full license in Africa.
Pursuant to the agreement between the Group and SRIB, SRIB agreed to act as the Group’s cooperating bank in the African region. Based on the Group’s multi-currency, international and distributed global settlement and clearing platform, the two parties will jointly provide fast-paced, safe and low-cost settlement and clearing services for cross-border enterprises in both China and Djibouti. The Group shall assist SRIB to achieve a point-to-point, “7x24” (24 hours a day, 7 days a week), multicurrency and real time fund settlement and clearing globally. At the same time, SRIB shall jointly provide more convenient financial services with diversified and innovative payment methods to its clients. The two parties will cooperate and promote the development of the settlement and clearing businesses, electronic payment business and financial supply chain business in both countries, and provide secure funding guarantee to the revenue of PRC enterprises generated from investment in Africa.
International Business Settlement Holdings Limited (HKEX stock code:00147.HK) is actively developing its new business of arranging the next generation settlement network.The Company intends to based on its distributed network, block chain and other technologies, deploy the next generation worldwide settlement and clearing network. It will provide a fast, highly efficient and low cost financial expressway between different countries by connecting their central banks’ real-time settlement andclearing systems. Based on its unique block chain regional settlement circle technology, the Group will construct a multi-currency, internationalized and distributed global settlement platform. This platform is aimed at realizing point-to-point, “7X24” (i.e. 24 hours a day, 7 days a week), multi-currency and real-time fund settlement and clearing for cross border trading businesses and individuals around the world.
