In a first for the continent, Standard Bank Corporate and Investment Banking is the first authorised bank to offer transactions through China’s Cross-Border Interbank Payment System (CIPS).
The bank was recently granted license to offer CIPS transactions at this year’s Lujiazui Forum. The Forum was created as a high-level global platform for government officials, world financial leaders and outstanding scholars to discuss and foster international financial cooperation and further the financial reform and market opening in China.
Eliminate the need for different currencies
The payment system will allow for interbank payments between Africa and China using Chinese Renminbi (RMB) as the underpinning currency. Access to CIPS will provide banks and financial institutions the ability to clear and settle cross-border payments without the need to use different currencies.
“As an institution that is invested in driving Africa’s economic growth, we are excited to be the first bank on the continent that offers CIPS transactions. This demonstrates our commitment and ability to deliver innovative solutions that truly add value for our clients,” says Anne Aliker, Group Head of Client Coverage at Standard Bank Corporate Investment Banking.
Growing trade between Africa and China
According to Standard Bank’s Trade Barometer 2024, 34% of surveyed businesses source their imports from China in contrast to 23% of the businesses surveyed in May 2023. This is indicative of the growing trade between Africa and China.
“We believe that CIPS will contribute to unlocking Africa’s economic potential by fast tracking the advancement in trade that will support infrastructure development, greater regional integration and efficient deployment of capital,” adds Aliker.
Simplifying transactions
With China being Africa’s largest export market, the new payment system will simplify and accelerate the clearance of transactions between the two markets.
“We will continue to seamlessly meet our clients’ needs by providing flexibility in solutions in line with to the developing payments landscape,” concludes Aliker.
CIPS transactions will be available on Standard Bank platforms from September 2025.
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