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Africa’s trade ambitions are accelerating, and with them comes a renewed demand for financial infrastructure that can keep pace.

On 20 November 2025, a ceremony to mark the launch of access to the CIPS was held. The seminal ceremony marked a turning point in the continent’s ability to move value swiftly and transparently across borders. The event confirmed Standard Bank’s direct participation in China’s Cross-border Interbank Payment System (CIPS), a continental first and a step that introduces a new era of efficiency for Africa-China financial flows.

This milestone follows the bank’s formal approval in April 2025 to join CIPS directly, allowing it to clear and settle renminbi (RMB) transactions with China’s central bank. It replaces the bank’s indirect participation through the Industrial and Commercial Bank of China (ICBC), introduced in 2017, with a more streamlined, direct route. While the shift may seem technical on the surface, its implications for African businesses, regional banks and the broader landscape of Africa-China trade are significant.

A trade reality that needed a new payment system

Across the continent, commercial ties with China continue to deepen. Businesses rely heavily on Chinese manufacturers, technology suppliers, energy producers and logistics partners. As cross-border flows grow in volume and importance, the limitations of legacy payment paths have become increasingly visible.

For many businesses, particularly those operating with thin margins, long supply chains or volatile commodity cycles, the timing of payments matters as much as the pricing of goods. Traditional routing of Chinese renminbi transactions often required intermediary institutions and multi-step clearing processes, creating delays and adding layers of operational uncertainty. These challenges could affect inventory management; strain working capital or disrupt production cycles.

CIPS offers a more direct and purpose-built system. Designed specifically for renminbi settlement, the system shortens turnaround times, reduces dependency on intermediaries and simplifies the overall transaction lifecycle for international payments. For African exporters and importers alike, this means improved visibility, less friction and more predictable cash-flow cycles, all critical factors in reducing business risk in cross-border trade.

Why direct renminbi settlement matters in practice

While financial infrastructure can seem abstract, the real-world impact is felt across African boardrooms, factory floors, shipping terminals and logistics corridors. Companies importing machinery, electronics, textiles and manufactured components from China, key pillars of local manufacturing activity, depend on reliable and timely payments to secure shipments or maintain inventory continuity.

Direct RMB clearing allows these businesses to do the following:

• Avoid unnecessary currency conversions
• Accelerate RMB transactions
• Benefit from improved settlement certainty
• Manage production schedules with greater confidence
• Strengthen their negotiating position with Chinese suppliers

On the export side, African producers shipping agricultural goods, minerals, consumer products or intermediate goods to China stand to gain from faster transaction settlement. Shorter liquidity cycles support reinvestment, wage stability and fulfilment of new orders, providing businesses with the financial rhythm required to scale.

Regional integration through financial infrastructure

The significance of Standard Bank’s participation in CIPS extends beyond its own client base. Its ability to offer RMB clearing services to other African banks creates a multiplier effect across the continent. As more institutions gain access to this channel, regional integration strengthens, and smaller or mid-sized financial institutions can support their clients more efficiently in China-linked trade.

This forms part of a broader continental trend: improving the ease and reliability with which money, goods and services move across borders and strengthening Africa-China trade facilitation. In recent years, Africa has prioritised interconnectedness, whether through the African Continental Free Trade Area (AfCFTA), digital customs systems, continental logistics corridors or new manufacturing zones. Payment modernisation is a necessary complement to these efforts.

CIPS therefore becomes more than a clearing mechanism: it is a backbone supporting Africa’s emerging role in global value chains.

Building momentum from a continental first

It is notable that Standard Bank is the first African bank to achieve this qualification. The institution’s scale across 20 African markets, long-standing partnership with ICBC and operational expertise in global markets have enabled it to meet the regulatory, technical and risk-management requirements for direct participation.

This shift does not replace existing systems such as SWIFT; rather, it expands the suite of tools available to businesses and financial institutions, giving them more flexibility in choosing how they process CIPS transactions. In a global environment that increasingly emphasises diversification, resilience and multiple payment pathways, having access to a purpose-built channel for renminbi (RMB) clearing is strategically valuable.

As African businesses navigate global volatility, ranging from supply-chain disruptions to energy transitions, the ability to transact efficiently with China becomes a competitive advantage.

A stronger foundation for Africa-China commerce

For Africa, the benefits of modernising cross-border payments are far reaching. Faster settlement reduces the administrative and financial strain that often accompanies complex transactions. Greater transparency supports auditability and strengthens operational governance. A more direct route for value transfer aligns Africa’s financial system with the realities of global trade flows.

These improvements come at a moment when many African nations are expanding their manufacturing ambitions, scaling global payment infrastructure programmes and deepening energy and logistics networks. In each of these sectors, China plays a significant role as supplier, financier or buyer. A faster, more reliable connection to the Chinese financial ecosystem helps unlock capacity across these strategic industries.

Looking forward: The next decade of payment evolution

As CIPS becomes embedded in Africa’s financial infrastructure, its impact will broaden over time. Early efficiencies in trade settlement will compound as more businesses and institutions adopt the channel. Regional banks will build their capabilities; supply chains will experience fewer lags, and Africa’s ability to integrate into global commerce will strengthen.

In the years ahead, Africa’s growth will depend as much on seamless financial systems as on physical infrastructure. Cross-border payment systems are not simply supporting mechanisms; they are catalysts for investment, competitiveness and stability.

The launch of direct CIPS participation represents a foundational step toward that future: a faster, more efficient connection between Africa and one of its most important economic partners. As the continent continues to expand its role in global markets, payment modernisation of this kind will help ensure that Africa’s growth ambitions are matched by the systems capable of carrying them forward.

Beyond the immediate operational benefits, the introduction of direct CIPS participation also signals a broader evolution in how African institutions engage with global financial systems. As more African markets modernise payments, digitise trade documentation and adopt interoperable standards, the continent is steadily reducing the historical barriers that once slowed participation in international commerce.

In this emerging landscape, efficiency is not just a competitive advantage; it is a precondition for growth. The ability to move capital swiftly, transparently and at lower cost supports everything from small-business expansion to major infrastructure investment. As African enterprises deepen their ties with Chinese suppliers and buyers, reliable RMB settlement becomes an essential component of long-term economic resilience.