Pan-African lender Ecobank is in talks with the Bank of China to introduce direct settlement in Chinese yuan for African clients by the end of the year, as financial institutions respond to shifting trade patterns between Africa and Asia, the bank’s chief executive said.
The proposed arrangement would allow transactions between African currencies and the yuan to be settled directly, bypassing the US dollar, which has long dominated international trade payments.
“We are looking at opportunities for us to settle with, instead of going through the dollar, we do it directly with the Chinese yuan,” Ecobank Group CEO Jeremy Awori told Reuters, citing rising demand from African small and medium-sized enterprises engaged in trade with China.
The Togo-based lender said the initiative reflects broader changes in Africa’s trade structure, as China remains a major partner for imports, exports and investment across infrastructure, mining and energy sectors.
Awori said Ecobank is expanding its presence in China to support growing commercial ties, though he did not disclose the scale of investment or staffing plans.
“You need the right tools and payment mechanisms to be able to do that. We’re investing in those,” he said.
The move comes as several African financial institutions and governments explore alternatives to dollar-based settlement systems in an effort to reduce transaction costs and foreign exchange exposure.
South Africa’s Standard Bank has already been authorised to process transactions through China’s Cross-Border Interbank Payment System (CIPS), while countries including Zambia and Kenya have experimented with yuan-denominated payments in selected sectors.
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In Zambia, some mining royalties have been paid in Chinese currency, while Kenya has previously converted portions of Chinese railway debt into yuan in a bid to manage repayment costs.
The Ecobank–Bank of China discussions also align with Beijing’s broader push to internationalise the yuan and deepen financial ties with Africa. China has expanded tariff-free access for most African countries with which it maintains diplomatic relations, reinforcing trade links that have grown steadily over the past decade.
Ecobank said the shift reflects structural changes in African trade, where China is a leading destination for commodities such as minerals, oil and gas, and a major supplier of manufactured goods.
African businesses have long argued that reliance on dollar-based settlement increases transaction costs due to double currency conversions when paying Chinese suppliers. Direct yuan settlement, proponents say, could streamline trade and improve margins for importers and exporters.
The bank’s leadership said digital payment infrastructure and regional financial integration will be key to enabling smoother cross-border transactions as Africa-China trade continues to expand.
While no final agreement has been announced, both Ecobank and the Bank of China are expected to continue discussions on technical and regulatory frameworks needed to support direct settlement operations.
The initiative underscores a broader realignment in global trade finance, as African institutions increasingly seek diversified payment channels alongside traditional dollar-based systems.
