Standard Bank Group has become the first African bank to directly participate in China’s Cross-Border Interbank Payment System (CIPS), marking a major milestone in global financial infrastructure and Africa-China trade relations.
The move, seen as a strategic leap in cross-border payments, allows African companies to engage in Renminbi (RMB)-denominated transactions without recourse to traditional dollar-based settlement mechanisms, potentially reshaping trade finance across the continent and beyond.
The Johannesburg-based banking giant was granted its CIPS license in June 2025 during the prestigious Lujiazui Forum in Shanghai, signaling China’s deepening economic ties with Africa and its ongoing effort to internationalize the yuan.
The system has now gone live on Standard Bank’s digital platforms, enabling corporate clients to clear and settle cross-border payments directly through the Chinese payment infrastructure.
China’s Cross-Border Interbank Payment System (CIPS) was launched in 2015 by the People’s Bank of China to support the clearing and settlement of international RMB payments.
Unlike the SWIFT network, which primarily serves as a messaging system linking global banks, CIPS enables both messaging and actual settlement in China’s currency, facilitating real-time or near real-time transactions.
By joining CIPS, Standard Bank removes the need for intermediaries, typically correspondent banks in the United States or Europe, to process RMB payments.
This bypasses costly and time-consuming currency conversions, particularly the common practice of routing payments through the US dollar.
Analysts say this could substantially lower transaction costs, reduce exposure to exchange-rate volatility, and accelerate settlement times for African firms importing from China.
China has been Africa’s largest bilateral trading partner for more than a decade, with two-way trade volumes reaching historic highs in recent years.
Standard Bank’s 2024 Trade Barometer reports that 34% of African businesses now source imports from China, up from 23% in 2023, underlining the deepening commercial links between the regions.
Traditionally, African companies buying Chinese goods have had to settle invoices in US dollars, introducing additional layers of complexity, liquidity constraints, and exchange costs.
With CIPS integration, these firms can pay directly in RMB, streamlining supply chains in key sectors such as manufacturing, construction, electronics and retail.
Standard Bank’s CIPS access is already live in South Africa, with plans to extend the service progressively across its broader African footprint, including markets such as Malawi.
Bank executives emphasize that the rollout aims to enhance connectivity and convenience for clients engaged in bilateral trade with China.
Financial commentators view this development against the backdrop of broader geopolitical and economic shifts.
For years, China has been pursuing the internationalization of the yuan, encouraging its use in trade and financial transactions as part of a long-term strategy to diversify away from reliance on the US dollar.
Participation in CIPS by non-Chinese institutions supports this agenda and bolsters the yuan’s credibility as an international settlement currency.
In practical terms, direct participation in CIPS could help African firms mitigate risks associated with dollar liquidity shortages and exchange-control delays that often complicate cross-border transactions.
The system’s capacity to clear payments in near real time will be particularly beneficial for cash-flow-sensitive businesses, easing working capital pressures and improving operational planning.
At the launch event, held jointly with the South African Reserve Bank and attended by senior officials including the People’s Bank of China Governor, leaders underlined the importance of modernized payment infrastructure in future trade facilitation.
Standard Bank’s corporate division described the initiative as “a tailored solution that meets our clients’ needs where they operate.”
Industry insiders predict that Standard Bank’s pioneering status may prompt other African financial institutions to seek similar CIPS access, accelerating the adoption of RMB settlement corridors across the continent.
Analysts also suggest that central banks and regulators will watch closely how this trend influences foreign exchange reserves and broader currency strategies.
Do you have any story or press releases you want to share? Send tips to editor@envestreetfinancial.com
Follow us on Twitter, Facebook, or LinkedIn to ensure you don’t miss out on any