BEIJING, April 21 – Ecobank is in advanced talks with Bank of China to launch a direct local-currency-to-yuan settlement platform by the end of the year, as trade ties between Africa and China continue to expand.
The initiative aims to allow businesses to settle transactions directly in Chinese yuan, bypassing the US dollar and reducing conversion costs that have long weighed on African firms engaged in cross-border trade.
The move reflects a broader shift across the continent, where financial institutions and governments are increasingly exploring alternatives to dollar-based payments.
For example, Standard Bank has already been authorised to process transactions through China’s Cross-Border Interbank Payment System (CIPS), enabling yuan-based settlements for its clients.
Several African countries are also adopting similar strategies, including the use of yuan in infrastructure financing and commodity payments, as well as the development of regional payment systems to facilitate intra-African trade.
According to Ecobank CEO Jeremy Awori, the growing scale of Chinese investment across sectors such as energy, mining, oil and gas is driving demand for more efficient and cost-effective payment solutions.
China’s push to internationalise the yuan, alongside expanded trade incentives for African nations, is further accelerating this trend.
To capitalise on these opportunities, Ecobank is also expanding its presence in China, positioning itself as a key financial bridge between African markets and one of their largest trading partners.
The planned settlement platform could mark a significant step toward reshaping cross-border payments in Africa, reducing dependency on the dollar and improving trade efficiency across the continent.