Standard Bank Pioneers Direct Connection to China’s CIPS, Enhancing Africa-China Trade

Revolutionizing Cross-Border Payments Between Africa and China

As Africa’s largest financial institution by asset size, Standard Bank has become the first African bank to establish a direct link with China’s Cross-Border Interbank Payment System (CIPS). This strategic integration enables African enterprises to transact payments to Chinese suppliers using the Chinese Renminbi (RMB), bypassing the traditional reliance on the US dollar.

Eliminating the Dollar as an Intermediary: Benefits for African Businesses

Historically, African companies have routed international trade payments through the US dollar, a process often fraught with delays, additional fees, and exposure to currency exchange fluctuations. By removing the dollar as an intermediary, Standard Bank’s direct CIPS connection promises accelerated transaction times, reduced costs, and simplified currency management, thereby streamlining trade with Africa’s largest trading partner.

China’s Growing Economic Footprint in Africa

Chinese imports are increasingly integral to Africa’s economic landscape. According to Standard Bank’s 2024 Trade Barometer, 34% of African businesses now source goods from China, a significant rise from 23% the previous year. Trade between China and Africa exceeded $134 billion in the first five months of 2025, marking a 12.4% increase year-over-year. The trade balance is characterized by finished goods flowing into Africa, while raw materials such as minerals and crude oil are exported to China. Major African importers include Nigeria, South Africa, and Egypt.

Understanding CIPS: China’s Global Payment Network

CIPS functions as a global clearing and settlement platform, allowing financial institutions worldwide to process cross-border payments directly in RMB. With Standard Bank now connected to CIPS, it can initiate and receive RMB payments in real or near real-time. The system supports both immediate settlements and batch processing, optimizing liquidity management and reducing transaction costs.

Implementation and Impact Across African Markets

After obtaining its CIPS license in June, Standard Bank has integrated the system into its digital platforms, benefiting sectors heavily dependent on Chinese imports such as electronics, construction materials, and manufacturing. Operating in 21 African countries, including key trade hubs like Nigeria, South Africa, and Egypt, the bank anticipates that RMB settlements will alleviate cash flow challenges and mitigate issues related to dollar liquidity shortages and volatile exchange controls.

Strategic Vision and Future Outlook

Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate and Investment Banking, emphasized the bank’s commitment to supporting Africa’s economic expansion: “This new service is designed to address our clients’ operational needs across the continent. By leveraging CIPS, we enhance integration with a vital trading partner and provide our clients with diversified options to optimize their business processes.”

This initiative aligns with global shifts in trade policies, particularly amid evolving U.S. trade dynamics and a growing international movement toward reducing dependence on the US dollar in cross-border payment systems.