Standard Bank, an African financial institution based in the continent, has received authorization to conduct transactions through China’s Cross-Border Interbank Payment System (CIPS), according to a report.

This development took place during this year’s Lujiazui Forum, where discussions centered on international financial cooperation and contributed to reforms in the Chinese financial sector.

The growing ties between Africa and China

CIPS will enable interbank payments between Africa and China using RMB as the underlying currency. This move is significant given that 34% of African businesses reported sourcing their imports from China, up from 23% in May 2023, based on data from Standard Bank’s Trade Barometer 2024.

This reflects the increasing trade relationship between Africa and China. Additionally, about 16% of African imports come from China, while 20% of African exports go to China according to research findings.

Standard Bank representatives expressed positive sentiments towards this development, noting that it is the first bank in Africa to offer CIPS transactions. This highlights the bank’s commitment to providing modern solutions that meet its customers’ needs and demands. The new payment system will play a crucial role in enhancing trade efficiency between the two markets and supporting broader economic developments like infrastructure projects and regional integration.

The bank aims to further focus on meeting clients’ specific requirements, offering customized services that align with evolving payment landscapes.