Jeremy Awori, Chief Executive Officer of Ecobank, stated that CIPS is a critical component of the infrastructure supporting international RMB payments. The partnership is expected to strengthen the link between China’s yuan payment infrastructure and Ecobank’s extensive banking and payments network, which operates in 34 African countries with a particularly strong presence in West Africa, including Nigeria and Ghana. By accessing this infrastructure, the lender aims to facilitate direct conversion from domestic African currencies into the Chinese yuan, a service intended to reduce transaction costs and simplify payments for importers and exporters.
The decision reflects a broader shift among African financial institutions seeking to improve payment efficiency as trade with China expands. Currently, many cross-border transactions between Africa and China rely on the US dollar as an intermediary, adding conversion fees and potential delays. By settling directly in yuan, businesses can potentially lower these costs. Ecobank is also negotiating with the Bank of China to jointly provide yuan settlement services, further integrating its operations into the Chinese financial ecosystem.
Ecobank’s entry follows recent moves by other major African lenders. South Africa’s Standard Bank joined CIPS in 2025 and has since expanded its services to Angola, Ghana, Kenya, Lesotho, and Tanzania. As of July 2026, Standard Bank had processed more than 8 billion yuan ($1.2 billion) through the system. Similarly, Rwanda’s Bank of Kigali and the African Export-Import Bank (Afreximbank) have already joined the platform, while Angola’s Banco de Fomento Angola is preparing to participate. In August, Standard Bank’s Ghanaian subsidiary, Stanbic Bank, launched direct CIPS access for eligible payments to Chinese suppliers.
China is a major trading partner for African economies, primarily exporting machinery, electronics, and consumer goods while importing commodities and raw materials. Bilateral trade between the two regions increased by nearly 18 percent last year. As this volume of trade grows, the demand for alternative payment arrangements that reduce reliance on the US dollar has intensified. Beijing is actively pushing to internationalize the yuan, encouraging its wider use in global commerce. However, the adoption of the yuan does not imply that African businesses will abandon the dollar entirely. The extent of yuan usage will depend on trade demand, currency availability, transaction costs, and the capacity of local banks to support these payments.
The integration of more African banks into CIPS also highlights ongoing challenges in intra-African payment interoperability. While many African countries have developed sophisticated digital and mobile payment infrastructure, relatively few intra-African transactions are processed entirely by domestic entities. Instead, many payments are routed through banking infrastructure in the US and Europe, adding complexity and fees. Improving the efficiency of international transactions was a primary motivation behind the development of CIPS, which connects more than 5,000 financial institutions across over 100 countries and territories.
Efforts to expand yuan usage are not limited to banking infrastructure. Ethiopia, where China is the largest trading partner and a principal source of machinery and infrastructure investment, is also exploring similar shifts. The National Bank of Ethiopia has initiated discussions with the People’s Bank of China regarding bilateral currency swap arrangements, trade financing facilities, and the integration of Ethiopian financial institutions into Chinese payment infrastructure. During high-level discussions in Beijing on April 2, 2026, National Bank Governor Eyob Tekalign and his Chinese counterpart, Pan Gongsheng, explored mechanisms to deepen monetary cooperation, including the possibility of increasing Ethiopia’s yuan-denominated foreign exchange reserves.
Despite these developments, the yuan’s share of global cross-border payments remains limited compared to the US dollar. The US Federal Reserve estimates that the dollar accounts for approximately 58% of international transactions across several measures, while the yuan’s share is roughly 2%. While some economists have suggested the yuan could become a global reserve currency in the coming years, its current international role remains modest. The upcoming signing of Ecobank’s agreement will add to the expanding network of institutions supporting yuan trade as Africa’s commercial ties with China continue to deepen.
