Pan-African lender Ecobank Group is in discussions with Bank of China to launch a direct local-currency-to-yuan settlement platform, reflecting a broader shift in Africa’s trade and financial systems. The initiative, expected to be rolled out by the end of 2026, aims to allow businesses to transact directly in Chinese yuan rather than routing payments through the U.S. dollar, as reported by Reuters.
The move is driven by rapidly expanding trade ties between Africa and China, with growing demand from small and medium-sized enterprises seeking more efficient payment mechanisms. Ecobank CEO Jeremy Awori noted that bypassing the dollar could reduce transaction costs and improve speed for African businesses trading with Chinese partners, according to MarketScreener.
The talks build on an existing partnership between both institutions focused on trade finance and renminbi-based services. Across the continent, similar shifts are already underway, with banks integrating into China’s Cross-Border Interbank Payment System and countries like Kenya and Zambia increasingly adopting yuan-based transactions for loans and royalties.
The development underscores a structural change in global trade flows, as Africa diversifies away from dollar dependency toward alternative currencies. For financial institutions, the shift represents both an opportunity to capture growing China–Africa trade volumes and a strategic repositioning within an evolving global monetary landscape.
