Business Correspondent
Pan-African lender Ecobank has signed a memorandum of understanding with China’s Cross-Border Interbank Payment System (CIPS) and is opening an office in Beijing as it seeks to facilitate direct yuan payments for businesses trading between Africa and China.
The move comes amid growing demand for alternatives to the US dollar in cross-border transactions, with African banks investing in payment infrastructure to capitalise on expanding commercial ties with the Asian economic giant.
Ecobank Group chief executive Jeremy Awori said the bank was moving to join CIPS, China’s payment network for transactions denominated in renminbi, also known as the yuan.
“CIPS is an important part of the infrastructure supporting international RMB payments,” Awori told Reuters ahead of the planned agreement signing in China on Saturday.
The bank, which operates in 34 African countries, expects the initiative to strengthen connections between China’s yuan payment infrastructure and its banking and payments network across the continent.
“This cooperation really strengthens the link between the Chinese RMB payment infrastructure and our African banking platform and payment infrastructure, which is obviously critical,” Awori said.
Ecobank is also in discussions with Bank of China to jointly offer yuan settlement services, with Awori indicating that an announcement on the proposed partnership was expected soon.
The proposed services would complement the bank’s CIPS initiative and other payment partnerships aimed at making trade between African businesses and Chinese counterparts easier.
Traditionally, businesses in some African markets buying goods from China have had to convert their local currencies into US dollars before converting the funds into yuan. Direct settlement arrangements could reduce the need for intermediary currency conversions, potentially lowering transaction costs and exposure to exchange-rate fluctuations.
However, the actual savings would depend on exchange rates, banking fees and the payment arrangements available to individual customers.
CIPS connects more than 5,000 banks in over 100 countries and territories, according to figures cited by Awori, providing businesses trading with China with additional options for settling transactions.
The expansion of the network reflects Beijing’s efforts to internationalise the yuan and encourage its use in global commerce, while African economies seek to diversify their payment channels as trade with China increases.
China-Africa trade grew by nearly 18 percent in 2025, according to Chinese customs data cited by Reuters. Beijing also removed tariffs on imports from 53 African countries from May 1, 2026, in a move intended to strengthen economic ties with the continent.
Several African financial institutions are pursuing similar initiatives.
South Africa’s Standard Bank became the first African lender to connect to CIPS in November 2025. In June this year, it secured authorisation with China’s Industrial and Commercial Bank of China to clear yuan transactions across Africa.
Rwanda’s Bank of Kigali has also joined the network, while Angola’s Banco de Fomento Angola is planning to follow suit.
