Standard Bank and the Industrial and Commercial Bank of China (ICBC) have been jointly authorised by the People’s Bank of China (PBoC) to clear renminbi (RMB) transactions across Africa, marking a major shift in cross-border trade finance infrastructure between the continent and China.
The arrangement establishes Standard Bank as the first African-based financial institution to receive RMB clearing bank status, operating alongside ICBC under a joint structure referred to as the “Renminbi Clearing Bank of Africa”.
According to an official announcement on Thursday, the mandate will enable the clearing of RMB transactions across 19 African countries, creating a continent-wide mechanism for processing trade and investment flows denominated in China’s currency.
It is also described as the first RMB clearing arrangement globally to be named after an entire continent and the first to be jointly operated by two commercial banks.
Streamlining China–Africa payments
The new system is intended to reduce friction in cross-border payments between African markets and China by enabling more direct settlement in renminbi, rather than relying on multiple currency conversions and intermediary banking channels.
Standard Bank said the structure will improve efficiency in trade payments, investment flows and corporate transactions between Africa and China, which has become one of the continent’s largest trading partners.
The development builds on earlier integration between the bank and China’s financial infrastructure. In November 2025, Standard Bank became the first African lender authorised to participate in China’s Cross-Border Interbank Payment System (CIPS), which supports RMB-based settlement.
Together, CIPS access and the new clearing mandate are expected to position the bank as a central hub for RMB transactions in Africa.
Growing role of China in African trade
The move comes amid increasing trade ties between Africa and Asia, particularly China. Recent trade data cited by Standard Bank indicates that Asian markets are becoming the preferred trading partners for a growing share of African businesses, while China remains the dominant source of industrial inputs across many sectors.
The bank said 67% of surveyed businesses identified China as their primary supplier of inputs, citing pricing competitiveness, product availability and supply chain reliability.
Strategic banking partnership
The clearing arrangement builds on a long-standing relationship between Standard Bank and ICBC, which holds a significant minority stake in the African banking group.
Standard Bank said the partnership allows it to expand its role in facilitating trade between Africa, China and other emerging markets, particularly as demand for RMB-denominated transactions continues to grow.
Bank executives said the new structure aligns with broader shifts in global trade patterns and Africa’s increasing integration into Asian supply chains.
Outlook
Standard Bank said it expects demand for RMB settlement services to rise as trade volumes between Africa and China continue to expand. The institution said the new aclearing status will support more efficient payment systems and strengthen financial links between the two regions.