Banco de Fomento Angola (BFA), Angola’s second-largest commercial bank, is set to join China’s Cross-Border Interbank Payment System (CIPS) as demand for direct yuan-denominated settlements continues to grow across Africa. According to Reuters, the move is aimed at supporting customers engaged in trade with China, Angola’s largest trading partner and a major buyer of its crude oil. BFA is expected to become the first Angolan bank to connect to CIPS, with the integration scheduled for completion by 2027.
The decision reflects the increasing use of the Chinese yuan in African trade as Beijing accelerates efforts to internationalise its currency and reduce dependence on the U.S. dollar in cross-border transactions. Earlier this month, Angola’s central bank added the yuan to the list of foreign currencies commercial banks can use to meet mandatory reserve requirements, placing it alongside the U.S. dollar, euro, and South African rand. The Angolan government is also exploring yuan-denominated debt financing to benefit from lower borrowing costs.
BFA executives said growing client demand for direct yuan settlements made participation in CIPS increasingly necessary, particularly as Chinese suppliers and financial institutions encourage transactions in their domestic currency. The development follows similar moves elsewhere on the continent, including Standard Bank’s connection to CIPS and its subsequent authorisation to clear yuan transactions across Africa. Analysts say expanding access to China’s payment infrastructure could reduce transaction costs, shorten settlement times, and strengthen financial links between African economies and China.
For Angola, BFA’s planned integration into CIPS represents another step in deepening economic and financial ties with China. As bilateral trade and investment continue to expand, greater use of the yuan is expected to diversify payment options for businesses, improve trade efficiency, and reinforce Angola’s role in the evolving financial relationship between Africa and its largest trading partner.
