BANKING | Standard Bank Becomes First African Bank to Connect Directly to China’s Cross-Border Payment System (CIPS)

Standard Bank, the largest bank in South Africa by assets, has become the first African lender to integrate directly with China’s Cross-Border Interbank Payment System (CIPS). The move opens a faster channel for African companies to settle payments with Chinese suppliers in Renminbi (RMB) rather than routing everything through the U.S dollar.

For years, most Africa – China trade transactions have been processed via the dollar, often adding delays, extra fees, and exposure to currency swings. Direct RMB settlement removes the dollar as an intermediary, potentially making cross-border payments quicker, simpler, and cheaper – especially as China remains Africa’s biggest trading partner.

According to Standard Bank’s 2024 Trade Barometer, 34% of African businesses now import from China, up from 23% the previous year. China – Africa trade reached over $134 billion in the first five months of 2025, growing 12.4% year-on-year. Finished goods dominate imports into Africa, while minerals and crude oil continue to flow in the opposite direction. Nigeria, South Africa, and Egypt remain among the continent’s top importers of Chinese goods.

CIPS serves as China’s clearing and settlement platform, enabling global financial institutions to send and receive cross-border payments directly in RMB. With the new integration, Standard Bank can now issue payment instructions to CIPS through its network, enabling real-time or near-real-time settlement. The system also supports instant payments and batch processing to help manage liquidity and reduce transaction costs.

The bank obtained its CIPS licence in June 2025 and has already activated the service on its digital platforms. This is especially relevant for African sectors heavily dependent on Chinese supply chains, including electronics, construction materials, and manufacturing.

With operations in 21 African markets – including major import hubs like Nigeria, South Africa, and Egypt—Standard Bank says RMB settlement can ease cash-flow challenges for companies and mitigate risks tied to dollar liquidity and fluctuating exchange controls.

“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 optimising their operations,” said Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate and Investment Banking.

The development comes at a time when shifts in U.S. trade policy and global trends are driving interest in alternative payment rails that don’t rely solely on the dollar.

Stay tuned to BitKE for updates into the evolving digital payments space in Africa.

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