Standard Bank has taken a major step in reshaping Africa–China trade flows by becoming the first African bank to directly integrate with China’s Cross-Border Interbank Payment System (CIPS). The move allows businesses across the continent to pay Chinese suppliers directly in Renminbi (RMB)—bypassing the US dollar for the first time at this scale.
For decades, African importers have relied on the dollar as a middle currency when settling trade with China, Africa’s largest trading partner. While this system worked, it introduced delays, additional bank fees, and exposure to volatile exchange rates. By connecting directly to CIPS, Standard Bank now offers a faster, cheaper, and more predictable payment route.
A shift aligned with rising Africa–China trade
China continues to deepen its trade footprint across the continent. According to Standard Bank’s 2024 Trade Barometer, the share of African businesses importing from China rose to 34%, up from 23% the previous year. Meanwhile, China–Africa trade reached $134 billion in the first five months of 2025—up 12.4% year-on-year.
Most African markets source finished goods including electronics, machinery, textiles, construction materials, and consumer products from China. Major import-heavy markets such as Nigeria, South Africa, and Egypt stand to benefit the most from smoother settlement options.
What CIPS integration means
CIPS is China’s global clearing and settlement system, enabling banks worldwide to process cross-border RMB transactions directly. Through this integration, Standard Bank can now:
- Send and receive RMB payments in real or near-real time
- Reduce transaction costs through direct settlement
- Improve liquidity by supporting both instant and batch payments
- Minimise FX risk and delays caused by dollar liquidity constraints
The bank secured its CIPS licence in June and has already activated the service across its digital platforms, offering an immediate advantage to businesses dependent on Chinese supply chains—particularly in manufacturing, construction, retail, oil & gas, and industrial goods.
Supporting African businesses
With a footprint spanning 21 African markets, Standard Bank believes direct RMB settlement will relieve pressure on businesses grappling with currency shortages, exchange controls, and unpredictable dollar availability.
“We are keen advocates for Africa’s growth, and this new service is tailored to provide solutions that meet our clients’ needs where they operate,” said Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate and Investment Banking. “CIPS will enable more integration with a key trading partner and offer our clients diverse options for optimising their operations.”
A timely move amid a shifting global financial landscape
The launch comes as more countries, including China, India, and Brazil, push for settlement alternatives that reduce dependency on the US dollar. For Africa—with supply chains increasingly tied to China—this integration could strengthen trade efficiency, improve financial resilience, and offer more autonomy in cross-border payments.
