China’s People’s Bank of China (PBOC) has authorized Standard Bank Group and the Industrial and Commercial Bank of China (ICBC) to jointly clear Renminbi (RMB) transactions across Africa, marking a significant milestone in the internationalization of the Chinese currency and deepening financial ties between China and the continent. As reported by Reuters and confirmed in a statement by Standard Bank, the partnership establishes the Renminbi Clearing Bank of Africa, giving businesses and financial institutions in 19 African countries direct access to China’s onshore financial system, including its capital markets and liquidity infrastructure.
The authorization is expected to simplify cross-border trade and investment by enabling African companies to settle transactions directly in yuan, reducing reliance on intermediary currencies such as the U.S. dollar. The move builds on Standard Bank’s admission into China’s Cross-Border Interbank Payment System (CIPS) in late 2025, where the bank processed approximately $500 million in RMB transactions within its first four months. Standard Bank’s Head of Operations for Corporate and Investment Banking, Richard de Roos, said the new clearing status would strengthen the bank’s ability to support the rapidly growing trade relationship between Africa and China.
The development comes as economic ties between China and Africa continue to deepen. Chinese customs data cited by CNBC Africa shows that bilateral trade grew by nearly 18% last year, while Beijing removed tariffs on imports from 53 African countries from May 1 as part of efforts to expand commercial engagement with the continent. Standard Bank’s latest Africa Trade Barometer also found that Asian countries have become the preferred trading partners for 35% of businesses surveyed across ten African markets, with China identified as the leading source of imports by 67% of respondents.
For Africa’s financial sector, the creation of the Renminbi Clearing Bank of Africa represents a major step toward more efficient cross-border payments and greater integration with global financial markets. Analysts say direct RMB clearing could lower transaction costs, reduce foreign exchange risk, and support stronger trade and investment flows between Africa and its largest trading partner. As China continues to promote the global use of the yuan, the initiative is expected to strengthen Africa’s access to alternative payment infrastructure while enhancing the continent’s role in international commerce.
