Standard Bank has activated a new system that lets African companies pay Chinese suppliers directly in yuan, removing the need to route transactions through the US dollar.
The move is now live across the bank’s network and marks a major shift in how Africa’s biggest lender handles cross-border trade with China.
Direct link to China’s CIPS network
The bank received approval to join China’s Cross-Border Interbank Payment System (CIPS) in June 2025 during the Lujiazui Forum in Shanghai.
The official launch took place at an event hosted by the South African Reserve Bank, attended by Governor Lesetja Kganyago, senior officials from the People’s Bank of China and representatives from CIPS.
This new connection gives African importers direct access to China’s fast-growing global payments system.
Standard Bank says the integration cuts out extra currency conversions, reduces fees and shortens settlement times that often slow down dollar-based transactions.
Lower costs and less exposure to dollar volatility
According to Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate and Investment Banking, the service is designed to support African businesses operating in key trade corridors with China.
He said the system will help clients “integrate more easily with a major trading partner” and offer more options to streamline operations.
The bank added that paying directly in yuan will help reduce exposure to swings in the US dollar. African companies importing machinery, electronics, textiles and construction materials from China are expected to benefit most from the stability and lower costs.
Part of a wider shift in global finance
Standard Bank’s move comes as more African countries explore alternatives to the dollar amid deepening economic ties with China. It also aligns with the broader goals of the expanded BRICS group, which includes South Africa — to increase local-currency trade and rely less on US-dominated financial systems.
South Africa’s active role in platforms like the G20 has strengthened its position as a bridge between African markets and emerging global power centres.
Analysts say the CIPS link is both practical and symbolic: it reduces transaction costs and signals Africa’s gradual shift toward a more multipolar financial order.
For sectors such as manufacturing, retail and construction, settling trade in yuan could stabilise cash flow, boost competitiveness and create more predictable cross-border payments.
Standard Bank’s entry into CIPS marks a significant milestone. It gives Africa a direct gateway into one of the world’s fastest-expanding payment networks and highlights a long-term change in how the continent conducts trade as global economic alignments evolve.
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