Stanbic launches China payments system to ease trade

Stanbic Bank Uganda has launched a new payment system that will enable businesses to make direct transactions with China in Chinese Yuan, in a move expected to cut costs and ease cross-border trade.

The bank becomes the first financial institution in Uganda to integrate with China’s Cross-Border Interbank Payment System (CIPS), allowing faster, more secure and lower-risk payments without relying on intermediary currencies.

The development is expected to streamline settlement for the billions of dollars in annual trade between Uganda and China while reducing foreign exchange exposure for businesses.

Uganda imported goods worth about USD 3.3 billion from China in 2025, compared to exports valued at USD 118 million. The new system is expected to help exporters access Chinese markets more efficiently while lowering transaction costs for importers.

Speaking at the launch during the inaugural Stanbic–China Trade Forum in Kampala, Minister of State for Industry David Bahati said the platform addresses long-standing challenges in payments and trade data.

“China is one of Uganda’s most significant bilateral partners. This solution removes key bottlenecks and opens practical pathways for deeper industrial and commercial collaboration,” Bahati said.

CIPS, launched in 2015 by the People’s Bank of China, is the official clearing and settlement system for cross-border transactions in Chinese Yuan.

Andrew Mashanda, Standard Bank Group’s Head of Business and Commercial Banking for Africa Regions and Offshore, said the initiative aligns with efforts to strengthen Africa–China trade relations.

“Africa–China trade has been a key driver of growth. The next phase will focus on building manufacturing capacity, value addition and infrastructure,” Mashanda said.

He added that Uganda’s position as a gateway to East Africa presents opportunities to attract more Chinese investment and boost regional trade.

Stanbic Bank Uganda Chief Executive Mumba Kalifungwa said the introduction of CIPS marks a significant step in modernising trade facilitation and reducing reliance on third-party currencies.

“The system will give Ugandan businesses a competitive edge and support government’s goal of growing the economy to USD 500 billion by 2040,” Kalifungwa said.

He noted that direct settlement in Chinese Yuan will reduce exchange rate volatility, speed up transactions and strengthen commercial ties between Ugandan and Chinese firms.

Stanbic also announced a partnership with Guomao, a platform linking Ugandan traders to one of Beijing’s major trading districts, to enhance sourcing and market access opportunities for local businesses.

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