Standard Bank became the first African bank to integrate directly with China's Cross Border Interbank Payment System (CIPS).
CIPS enables African businesses to pay Chinese suppliers in yuan, circumventing the use of the US dollar for transactions.
The integration, initiated at an event by the South African Reserve Bank, strengthens Africa-China financial cooperation.
The new system decreases transaction costs, minimizes settlement delays, and mitigates dollar exchange rate exposure.

The system, which is now active across Standard Bank’s network, allows African businesses to pay Chinese suppliers directly in Chinese yuan instead of routing transactions through the US dollar.

Standard Bank received approval to offer CIPS services in June 2025 during the Lujiazui Forum in Shanghai.

The integration was formally launched at an event hosted by the South African Reserve Bank, with Governor Lesetja Kganyago and senior officials from the People’s Bank of China and CIPS in attendance.

The move signals deepening financial cooperation between Africa’s largest bank and China’s expanding global payments network.

According to the bank, direct access to CIPS will reduce currency conversion steps, lower transaction costs and cut settlement delays that often affect dollar based payments.

According to Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate and Investment Banking, “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. The system will enable more integration with a key trading partner and offer our clients diverse options for optimizing their operations.”

The bank noted the new system will also reduce exposure to dollar exchange rate volatility for African importers who rely heavily on Chinese machinery, electronics, textiles and construction materials. Standard Bank said the service provides clients with new ways to optimise trade operations with China.

Africa is steadily reducing reliance on the dollar as BRICS influence grows

Standard Bank’s integration with CIPS reflects a wider realignment across Africa as trade patterns shift and geopolitical blocs evolve.

African countries are increasingly exploring currency alternatives that match their growing economic links with China. The move also fits into the broader aspiration of the expanded BRICS group, which includes South Africa, to promote more local currency settlement and reduce dependence on the US dominated financial system.

South Africa’s recent engagements at global platforms such as the G20 have further reinforced the country’s position as a connector between African markets and emerging global power centres.

Analysts see the CIPS connection as both a practical tool for lowering costs and a symbolic step toward a more multipolar financial system.

For businesses across sectors like manufacturing, retail and construction, the ability to settle trade in yuan could stabilise cash flows, improve competitiveness and enhance predictability in cross border payments. Continued success will depend on regulatory alignment across African markets and effective risk management as yuan based settlement grows.

Standard Bank’s entry into CIPS marks a historic moment. It provides Africa with a direct gateway into one of the fastest growing global payment systems and signals a long term shift in how the continent conducts trade in a changing global economic order. (BUSINESS INSIDER AFRICA)

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