China has authorised South Africa’s Standard Bank and the Industrial and Commercial Bank of China (ICBC) to clear renminbi transactions across Africa, marking a significant step in Beijing’s efforts to expand the global use of its currency and deepen financial ties with the continent.
The approval by the People’s Bank of China allows the two lenders to jointly operate as the Renminbi Clearing Bank of Africa, providing yuan clearing services across 19 African countries. The arrangement gives businesses and financial institutions direct access to China’s onshore financial system, including its capital markets, liquidity infrastructure and payment systems.
The move is expected to make trade and investment between China and Africa faster and more efficient by reducing settlement times, lowering transaction costs and limiting reliance on intermediary banks. It also supports Beijing’s broader strategy of promoting the yuan as an international currency and reducing dependence on the US dollar in cross-border transactions.
Standard Bank said the new clearing bank will leverage its extensive African footprint alongside ICBC’s expertise in renminbi services to facilitate payments for companies trading with China. The lender described the initiative as the first renminbi clearing bank named after an entire continent and the first globally to be jointly operated by two commercial banks.
The approval builds on Standard Bank’s participation in China’s Cross-Border Interbank Payment System (CIPS), which it joined in late 2025 as the first African bank admitted to the network. Since then, the bank has processed more than $500 million in renminbi transactions, reflecting growing demand for direct settlement in the Chinese currency.
The development comes as trade between China and Africa continues to expand. China remains Africa’s largest trading partner, while Beijing recently removed tariffs on imports from 53 African countries in an effort to strengthen commercial relations. Rising trade volumes have increased demand for payment systems that allow businesses to settle transactions directly in yuan rather than converting through the US dollar.
According to Standard Bank’s latest Africa Trade Barometer, Asian markets have become increasingly important trading partners for African businesses. China remains the leading source of imported goods for many companies, with firms citing competitive pricing, product variety and supply chain reliability as key advantages.
For African businesses, the new clearing arrangement could simplify access to Chinese suppliers and financial markets while reducing foreign exchange costs associated with dollar-denominated trade. Companies engaged in imports, exports and investment with China are expected to benefit from quicker settlements and improved access to renminbi liquidity.
The approval also underscores China’s determination to increase the international use of the yuan as geopolitical tensions and shifting global trade patterns encourage countries to diversify payment and settlement options. For Africa, it represents another milestone in the continent’s deepening economic integration with the world’s second-largest economy.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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