China’s central bank has authorised South Africa’s Standard Bank and the Industrial and Commercial Bank of China (ICBC) to clear yuan transactions across Africa, a move aimed at expanding direct access to China’s financial system and facilitating trade and investment flows between the two regions.
Standard Bank said on Friday that the approval by the People’s Bank of China (PBoC) allows the two institutions to operate jointly as the “Renminbi (RMB) Clearing Bank of Africa,” with the capacity to process yuan transactions in 19 African countries.
The arrangement will enable African businesses and financial institutions to access China’s onshore financial infrastructure, including liquidity facilities and capital market services, reducing reliance on traditional foreign currency settlement channels.
The move comes as economic ties between China and Africa continue to deepen. Chinese customs data showed that trade between China and African countries increased by nearly 18 percent last year, while Beijing removed tariffs on imports from 53 African nations from May 1.
Standard Bank said the new clearing framework would help simplify cross-border payments, support investment activity and improve efficiency for companies engaged in China-Africa trade.
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The bank became the first African lender to join China’s Cross-Border Interbank Payment System (CIPS) in November 2025, processing $500 million in transactions during its first four months on the platform.
CIPS is China’s alternative global payment infrastructure designed to support international use of the yuan and reduce dependence on other major settlement systems.
The expansion of yuan clearing services comes as African companies increasingly strengthen commercial links with Asian markets.
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According to Standard Bank’s Africa Trade Barometer, Asian countries are now preferred trading partners for 35 percent of African businesses surveyed, up from 24 percent in 2024.
The report also found that China is the leading source of inputs for 67 percent of African businesses surveyed, highlighting Beijing’s growing role in the continent’s supply chains.
Standard Bank said the new RMB clearing arrangement would provide companies with faster settlement options and greater access to China’s financial ecosystem, potentially supporting increased investment and trade between Africa and the world’s second-largest economy.
The development forms part of China’s broader push to internationalise the yuan while expanding economic engagement with Africa, where Beijing has become a major trade partner and source of infrastructure financing.
