In a landmark development for Africa China financial cooperation, Standard Bank has become the first African bank authorised to facilitate transactions through China’s Cross Border Interbank Payment System. The milestone was formally marked at an inauguration ceremony held at the South African Reserve Bank in Pretoria and attended by senior officials from both South Africa and China, including Lesetja Kganyago, Governor of the South African Reserve Bank, Pan Gongsheng, Governor of the People’s Bank of China, and Wang Hongbo, Chairman of CIPS.
Standard Bank, the continent’s largest financial institution by assets, was officially granted the licence to operate CIPS transactions earlier this year during the Lujiazui Forum in Shanghai. The implementation of the system represents a significant turning point in Africa’s participation in global financial infrastructure and offers a more direct and autonomous method for settling cross border transactions using the Chinese Renminbi. This development aligns with a growing trend in Africa China commercial relations and provides an alternative to traditional, often Western dominated, financial channels.
CIPS facilitates the clearing and settlement of cross border payments in Renminbi between African and Chinese entities without requiring intermediary currencies such as the US dollar. This effectively reduces dependency on third party financial infrastructures and enhances transactional efficiency. For African businesses engaged in trade with China, the system may enable faster, more cost effective payments while potentially reducing foreign exchange risk.
According to data published in the Standard Bank Trade Barometer 2024, 34 percent of surveyed African businesses now source their imports from China, a marked increase from 23 percent in May 2023. This growth in trade underscores the increasing strategic alignment between the two regions and highlights the importance of infrastructure that can facilitate this expanding commercial footprint. China remains Africa’s largest export destination, a fact that further underscores the significance of this payment system for African economic development.
Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate and Investment Banking, noted that the system is a tailored solution that meets clients’ operational needs in rapidly evolving trade environments. In his words, “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.”
The activation of CIPS on the African continent signals a broader reconfiguration of international payment networks, one that opens the door for more multipolar financial flows and supports a shift toward diversified currency regimes in global trade. This move should be read not as a rejection of existing financial systems but rather as a necessary evolution for a continent whose economies are asserting greater sovereignty and agility in international finance.
Moreover, the collaboration between China and Africa on financial systems mirrors the broader realignment of diplomatic and economic relations where African agency is increasingly prominent. Initiatives such as the CIPS integration support a vision of Africa not merely as a passive recipient of global influence but as a co shaper of new financial norms and practices.
Standard Bank has confirmed that the service is now fully operational and accessible via its platforms. The launch of this facility comes at a time of deepening financial innovation across the continent, and may set a precedent for other African institutions to adopt similar channels in pursuit of diversified global trade and fiscal independence.
For more information on CIPS, the official platform and its technical standards can be accessed via the CIPS official website. More about Standard Bank’s pan African financial services and its involvement in Africa China trade facilitation is also publicly available.
