Standard Bank receives authorization for China cross-border interbank payment system transactions in Africa

South African bank secures license to process RMB-denominated payments between African and Chinese institutions through CIPS platform

Anne Aliker, Group Head of Client Coverage at Standard Bank Corporate Investment Banking.

Standard Bank Corporate and Investment Banking has received authorization to process transactions through China's Cross-Border Interbank Payment System, becoming the first bank in Africa to secure access to the payment infrastructure.

The bank received licensing approval at the Lujiazui Forum, a platform where government officials, financial sector representatives, and academic researchers discuss international financial cooperation and market development in China.

The payment system enables interbank transactions between African and Chinese financial institutions using Chinese Renminbi as the settlement currency. Access to CIPS allows banks and financial institutions to clear and settle cross-border payments without converting between multiple 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," said Anne Aliker, Group Head of Client Coverage at Standard Bank Corporate Investment Banking.

Standard Bank's Trade Barometer 2024 indicates 34% of surveyed businesses source imports from China, compared to 23% in the May 2023 survey. This reflects increased trade volume between African markets 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," Aliker stated.

China functions as Africa's largest export destination. The payment system will process transaction clearances 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," Aliker added.

CIPS transaction capabilities are now available on Standard Bank platforms.

The Cross-Border Interbank Payment System operates as China's infrastructure for international RMB transactions, providing an alternative to currency conversion through intermediary banking systems. Financial institutions use CIPS to process payments, collections, and financial market transactions denominated in RMB. The system connects to domestic Chinese payment infrastructure and international financial messaging networks.

Standard Bank's authorization addresses operational requirements for African businesses conducting trade with Chinese counterparties. Companies importing goods from China or exporting to Chinese markets can settle transactions in RMB rather than converting between local African currencies, US dollars, euros, or other intermediary currencies. This reduces foreign exchange conversion costs and settlement timeframes.

The authorization coincides with expanding commercial relationships between African economies and China across infrastructure development, manufacturing, commodities trade, and services sectors. Payment infrastructure that accommodates RMB-denominated transactions responds to increased transaction volumes in bilateral trade.

Standard Bank operates across 20 African countries and maintains presence in China through representative offices and partnerships with Chinese financial institutions. The bank processes corporate banking, investment banking, and transaction banking services for clients engaged in Africa-China commerce.