Standard Bank becomes first African Bank to offer China’s CIPS transactions

In a move set to streamline trade finance, Standard Bank Group has become the first African financial institution to officially offer transactions through China’s Cross-Border Interbank Payment System (CIPS).

The system, which was formally inaugurated at a ceremony held at the South African Reserve Bank (SARB), will enable businesses to clear and settle cross-border payments between Africa and China directly in Chinese Renminbi (RMB). This reduces the traditional reliance on multiple currencies and correspondent banking networks, potentially accelerating transaction times and lowering costs.

The launch event was attended by SARB Governor Lesetja Kganyago and his counterpart from the People’s Bank of China (PBOC), Pan Gongsheng, alongside CIPS Chairman Wang Hongbo. Both central bank governors highlighted the system’s strategic importance for future commercial payments between the two regions.

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Standard Bank, Africa’s largest bank by assets, was granted the license to offer CIPS in June at the Lujiazui Forum in Shanghai. The system has now gone live, marking a significant milestone in Africa-China financial relations.

“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,” said Crosby Mkhwanazi, Head of Client Coverage at Standard Bank Corporate & Investment Banking. “CIPS will enable more integration with a key trading partner and offer our clients diverse options for optimising their operations.”

The launch is particularly significant given China’s position as Africa’s largest trading partner. According to Standard Bank’s own Trade Barometer 2024, 34% of surveyed businesses now source their imports from China, a notable increase from 23% just a year ago.

The new RMB-based payment channel is expected to simplify and accelerate the clearance of transactions, supporting the growing trade flows between the two markets.

“We are confident in the exciting and continued evolution of the payments environment,” Mkhwanazi concluded. “CIPS is a seminal touchpoint for the broader development that continues to proceed at pace in the space.”