The new RMB clearing arrangement gives African businesses direct access to China’s onshore financial system and aims to reduce settlement costs.
A New Payment Channel for Africa-China Trade
China’s central bank has authorized Standard Bank and the Industrial and Commercial Bank of China to jointly operate the Renminbi Clearing Bank of Africa, creating a new payment channel for businesses and financial institutions trading between Africa and China.
As reported by Business Insider Africa, the arrangement gives African businesses and financial institutions direct access to China’s onshore financial system for the first time, including its payment infrastructure, liquidity facilities and capital markets.
As part of the deal, Standard Bank, Africa’s largest lender by assets, becomes the first African-headquartered lender to receive RMB clearing status. The new structure will allow eligible cross-border transactions to be settled directly in yuan rather than routed through the US dollar.
Clearing Across 19 African Countries
The two banks will jointly operate the Renminbi Clearing Bank of Africa with capacity to clear RMB transactions in 19 African countries.
The approval follows Standard Bank’s admission into China’s Cross-Border Interbank Payment System in November 2025, when it became the first African commercial bank to join the network. During its first four months on the platform, the bank processed about $500 million in RMB transactions, reflecting growing demand for yuan-based settlements between Africa and China.
The new clearing arrangement is intended to make trade between Africa and China faster, cheaper and more efficient by reducing foreign-exchange conversion costs, shortening settlement times and limiting exposure to US dollar fluctuations.
Reducing Costs for Importers
The arrangement is expected to support African companies importing machinery, industrial equipment, electronics, vehicles and manufactured goods from China.
By settling eligible transactions directly in yuan, businesses could reduce conversion costs and improve payment efficiency, an important consideration for companies operating in markets where access to hard currency remains constrained.
Richard de Roos, Head of Operations for Corporate and Investment Banking at Standard Bank, said the approval would strengthen commercial ties between Africa and China. “This new service will provide our clients with transparent, efficient and cost-effective payment solutions between China and Africa, supporting trade and investment between the world’s most dynamic economies,” he said.
Trade Patterns Shift Toward Asia
The approval comes as China continues to promote wider international use of the yuan and deepen its financial engagement with Africa.
China has remained Africa’s largest bilateral trading partner for more than a decade, while trade between the two sides rose by nearly 18% last year, according to Chinese customs data. In May, Beijing removed tariffs on imports from 53 African countries with which it maintains diplomatic relations, a move expected to further support commercial ties.
The latest Standard Bank Africa Trade Barometer also points to changing trade patterns. Asian countries are now the preferred trading partners for 35% of surveyed businesses, up from 24% in 2024. China remains the leading source of production inputs for 67% of respondents, who cited competitive pricing, product variety and reliable supply chains.
A Step Forward in the Yuan’s Internationalisation
The Renminbi Clearing Bank of Africa marks the first RMB clearing bank established on a continent-wide basis and the first jointly operated by two commercial banks.
While the US dollar remains the dominant global trade currency, the new arrangement gives African companies and financial institutions another settlement option as trade and investment flows with China continue to expand.
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