CAPE TOWN, June 26 – Standard Bank Group and Industrial and Commercial Bank of China (ICBC) have been authorized by People’s Bank of China to clear renminbi (RMB) transactions across Africa, giving businesses on the continent direct access to China’s onshore financial system for the first time, Reuters reported on Friday.
The authorization establishes the two banks as the Renminbi (RMB) Clearing Bank of Africa, enabling them to jointly provide RMB clearing services across 19 African countries.
The move is expected to simplify cross-border payments, lower transaction costs and improve the efficiency of trade and investment flows between Africa and China by allowing businesses to settle transactions directly in China’s currency.
The approval comes as economic ties between China and Africa continue to deepen.
According to Chinese customs data, trade between China and Africa increased by nearly 18% last year, while Beijing eliminated tariffs on imports from 53 African countries on May 1, further strengthening commercial relations.
The new clearing arrangement also provides participating financial institutions with access to China’s domestic capital markets and liquidity infrastructure, broadening financing options for African businesses engaged in trade with Chinese partners.
Standard Bank has been expanding its presence within China’s financial ecosystem in recent years.
In November 2025, the bank became the first African lender to join China’s Cross-Border Interbank Payment System, processing approximately $500 million in transactions during its first four months of participation.
The latest authorization is expected to build on that foundation by accelerating renminbi adoption in African trade and financial markets.
According to Standard Bank’s Africa Trade Barometer, Asian countries are now the preferred trading partners for 35% of African businesses, up from 24% in 2024.
The survey also found that 67% of African businesses identify China as their leading source of production inputs, reflecting the country’s growing role in Africa’s supply chains and industrial development.
The RMB clearing initiative is expected to support increasing trade volumes under the expanding China-Africa economic partnership while strengthening Africa’s access to one of the world’s largest financial markets.
