Africa’s largest lender wins China approval to clear yuan payments across 19 countries in major trade shift

African businesses trading with China are set to gain faster and cheaper access to the world’s second-largest economy after China’s central bank authorised Africa’s largest lender to process yuan payments across 19 countries, marking another major step in Beijing’s efforts to deepen financial ties with the continent and expand the global use of its currency.

• China has authorised Africa’s largest lender, Standard Bank, to jointly clear yuan transactions across 19 African countries.
• The move gives businesses across the continent direct access to China’s onshore financial system for the first time.
• It comes as China deepens trade and investment ties with Africa while promoting wider international use of the yuan.
• Businesses are expected to benefit from faster settlements, lower transaction costs and reduced dependence on the US dollar.

The People’s Bank of China (PBoC) has jointly authorised Standard Bank and the Industrial and Commercial Bank of China (ICBC) to operate the Renminbi (RMB) Clearing Bank of Africa, giving businesses and financial institutions across the continent direct access to China’s onshore financial system for the first time.

The appointment makes Standard Bank, the largest bank in Africa by assets, the first African-headquartered lender to receive RMB clearing status, placing it at the centre of a new payment infrastructure designed to make trade between Africa and China faster, cheaper and more efficient.

The move effectively gives African financial institutions their first direct gateway into China’s domestic payment and liquidity system, allowing eligible cross-border transactions to be settled directly in yuan rather than routed through the US dollar.

The authorisation builds on Standard Bank’s admission into China’s Cross-Border Interbank Payment System (CIPS) in November 2025, when it became the first African commercial bank to join the network.

The bank processed about $500 million in RMB transactions during its first four months on the platform, underscoring growing demand for yuan-based settlements between Africa and China.

The latest development comes as Beijing accelerates efforts to internationalise the yuan by encouraging more countries to settle trade in its currency instead of the US dollar.

Africa has become a key pillar of that strategy. China has remained Africa’s largest bilateral trading partner for more than a decade, with trade between the two sides rising by nearly 18% last year, according to Chinese customs data.

In May, Beijing removed tariffs on imports from 53 African countries with which it maintains diplomatic relations, a move expected to further boost trade and strengthen China’s commercial ties across the continent.

The new clearing arrangement is expected to benefit African companies importing machinery, industrial equipment, electronics, vehicles and manufactured goods from China.

By settling eligible transactions directly in yuan, businesses could reduce foreign-exchange conversion costs, shorten settlement times and limit exposure to fluctuations in the US dollar, an important consideration for companies operating in markets where access to hard currency remains constrained.

The arrangement is also a milestone for China’s financial engagement with Africa. It is the first RMB clearing bank established on a continent-wide basis and the first jointly operated by two commercial banks, providing participating institutions with access to China’s capital markets, liquidity facilities and payment infrastructure.

Richard de Roos, Head of Operations for Corporate and Investment Banking at Standard Bank, said the approval would strengthen commercial ties between Africa and China.

“This new service will provide our clients with transparent, efficient and cost-effective payment solutions between China and Africa, supporting trade and investment between the world’s most dynamic economies,” he said.

The appointment also reflects changing trade patterns across Africa. According to the latest edition of the Standard Bank Africa Trade Barometer, Asian countries are now the preferred trading partners for 35% of businesses surveyed, up from 24% in 2024.

China remains the leading source of production inputs for 67% of respondents, who cited competitive pricing, product variety and reliable supply chains as the main reasons for sourcing from the country.

The latest approval builds on a partnership that has evolved over nearly two decades. ICBC acquired a strategic stake in Standard Bank in 2007, creating one of the largest banking partnerships between China and Africa and laying the foundation for deeper financial cooperation.

It forms part of China’s broader strategy to build the financial infrastructure needed to support its expanding economic footprint across Africa.

As trade, investment and infrastructure financing between the two sides continue to grow, wider use of the yuan could gradually reduce transaction costs for businesses while giving African firms greater flexibility in how they settle trade with their largest bilateral trading partner.

Although the US dollar is expected to remain the dominant global trade currency for the foreseeable future, the establishment of the RMB Clearing Bank of Africa marks another step in China’s long-term effort to make the yuan a more widely used international settlement currency, placing Africa at the centre of that strategy.