Standard Bank, the largest bank in South Africa by assets, has made a historic move by becoming the first African bank to directly integrate with China’s Cross-Border Interbank Payment System (CIPS). This groundbreaking step offers African companies a more efficient way to pay Chinese suppliers in Renminbi (RMB), China’s currency, bypassing the US dollar.
Traditionally, African businesses have relied on the US dollar for trade payments, which often led to delays, additional fees, and exposure to currency exchange fluctuations. By eliminating the dollar intermediary, this new integration enables faster, more straightforward, and potentially more cost-effective transactions with China, Africa’s largest trading partner.
The importance of Chinese goods in Africa’s economy is growing rapidly. According to Standard Bank’s 2024 Trade Barometer, 34% of African businesses now import from China, up from 23% the previous year. In the first five months of 2025, trade between China and Africa surpassed $134 billion, marking a 12.4% increase year-on-year. While finished goods dominate imports from China, raw materials such as minerals and crude oil are sent back to China. Leading African importers from China include Nigeria, South Africa, and Egypt.
CIPS, the platform facilitating cross-border payments, connects Standard Bank directly to China’s payment system. This allows the bank to process payments in RMB in real time or near real time. CIPS supports both instant settlements and batch payments, which helps reduce transaction costs and enhances liquidity.
Having secured its CIPS license in June, Standard Bank has already implemented the system on its digital platforms, offering significant advantages for sectors dependent on Chinese supply chains, such as electronics, construction, and manufacturing. With operations across 21 African markets, including major import hubs like Nigeria, South Africa, and Egypt, the integration of RMB settlement could alleviate cash-flow challenges and eliminate issues related to dollar liquidity and fluctuating exchange controls.
Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate and Investment Banking, emphasized, “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. CIPS will enable more integration with a key trading partner and offer our clients diverse options for optimizing their operations.”
