Standard Bank Group, Africa’s largest bank by assets, has executed a landmark financial move by becoming the first African banking institution to officially integrate directly with China’s Cross-Border Interbank Payment System (CIPS).
The integration, which allows for direct trade settlement in the Chinese Yuan (Renminbi), signals a major geopolitical and economic shift, providing African businesses with a powerful mechanism to bypass the U.S. Dollar as an intermediary currency in trade with China.
Strategic Integration with China’s CIPS
The decision follows years of burgeoning trade between the continent and the Asian economic giant. By connecting directly to the CIPS network, Standard Bank is positioned to simplify and expedite the flow of funds for its massive client base of African importers and exporters.
The new system eliminates the need for expensive and time-consuming “double conversion,” where local currencies must first be converted to U.S. Dollars, and then into Yuan, exposing traders to dual foreign exchange fluctuations and additional bank fees.
Significant Cost Savings for African Businesses
The most immediate benefit of the integration will be felt by African businesses—particularly SMEs in manufacturing, retail, and construction—who rely heavily on Chinese machinery, raw materials, and finished goods.
Financial analysts estimate that the direct RMB settlement could save African companies up to 30% on transaction costs, while also significantly cutting down on processing times. This efficiency boost is vital for companies operating on thin margins in an inflationary environment.
“Reducing the transaction cost of trade between Africa and China is a massive value proposition for our clients,” stated a Standard Bank executive. “This is about enhancing resilience and profitability by offering better currency hedging tools and greater financial sovereignty.”
The De-Dollarization Pivot
Standard Bank’s move reinforces a growing global trend toward de-dollarization, which is particularly relevant in Africa, where central banks are seeking stability and alternatives to relying on the unpredictable volatility of the U.S. Dollar.
The integration is a critical acknowledgment of the immense trade corridor between the regions. With China-Africa trade volumes soaring—reaching an estimated $134 billion in the first five months of 2025—having a direct and stable payment channel in the local currencies of the trading partners ensures the financial infrastructure can sustain this massive growth.
The decision is expected to place pressure on rival African banks and regional payment systems to follow suit rapidly, as access to cheaper and more efficient RMB settlement quickly becomes a competitive necessity for attracting large-scale trade finance clients.
