Ecobank is in advanced discussions with the Bank of China to introduce direct local currency-to-yuan settlement services for clients by the end of 2026, a move aimed at reducing reliance on the US dollar in Africa–China trade. Group CEO Jeremy Awori said the initiative responds to strong client demand, particularly from small and medium-sized enterprises that increasingly import from China. The Togo-based bank operates across 35 African markets and has already signed a memorandum of understanding with Bank of China (Mauritius) to expand trade finance, payments, and renminbi capabilities.
The push comes at a time of rapidly growing trade between Africa and China, which reached a record 348 billion dollars in 2025. While Chinese exports to Africa have surged, African businesses often face additional costs from dollar-based transactions, including currency conversion fees and delays in settlement. Direct yuan payments are expected to reduce transaction costs, improve speed, and limit exposure to dollar volatility, which has become a growing concern for importers and exporters across the continent.
The move also reflects a broader shift in financial systems across Africa, where several countries are increasing use of the yuan through currency swap agreements and alternative payment platforms linked to China’s financial network. Institutions such as Ecobank are positioning themselves to support this transition by strengthening China-linked banking infrastructure and expanding settlement options for trade finance clients.
However, while the shift promises efficiency gains for businesses, it also raises concerns about increasing financial dependence on China and potential exposure to currency and debt risks. Despite these challenges, the trend toward yuan-based trade settlement continues to accelerate as African economies seek cheaper and faster cross-border payment solutions.