by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – SOUTH Africans and citizens across the continent are urging more African banks to join China’s Cross-Border Interbank Payment System (CIPS) following Standard Bank’s decision to become the first African financial institution to participate directly in the platform.
The move is widely seen as a catalyst for accelerating trade within the African Continental Free Trade Area (AfCFTA) and strengthening South-South economic cooperation.
Standard Bank, Africa’s largest financial institution by assets, unveiled its CIPS integration at a ceremony attended by executives, diplomats and business leaders.
The bank said the system would significantly improve the speed, cost and efficiency of cross-border transactions—particularly those denominated in the Chinese yuan (RMB), now one of the fastest-growing settlement currencies in Africa.
Standard Bank Group Chief Executive, Sim Tshabalala, has in past public remarks emphasized the bank’s strategy of deepening Africa–China financial connectivity.
At the launch, executives reiterated that direct participation in CIPS allows African businesses to settle payments with Chinese partners without routing through multiple intermediary banks in Europe or the United States—cutting delays, reducing dollar-conversion fees and mitigating exposure to geopolitical disruptions in Western-dominated financial networks.
Chinese diplomat Wu Peng welcomed Standard Bank’s entry, calling it “a historic step” that would enhance payment efficiency, lower costs and “deepen China–Africa economic cooperation.”
He noted that faster, cheaper and more predictable settlement infrastructure is essential for growing bilateral trade, which surpassed US$280 billion in recent years.
Launched in 2015, CIPS is China’s global financial messaging and settlement system designed to facilitate international use of the yuan.
It performs functions similar to the Western Society for Worldwide Interbank Financial Telecommunication (SWIFT) network but with direct clearing capabilities in RMB.
While SWIFT is a messaging system, CIPS integrates messaging with actual settlement, enabling faster processing and reduced reliance on third-party correspondent banks.
For countries wary of the “weaponisation” of financial infrastructure—where sanctions or political pressure can restrict access to payment channels—CIPS offers an alternative that is insulated from Western geopolitical leverage.
This has made it attractive to states such as Russia, Iran and others seeking de-risked trade routes.
Africa’s growing BRICS partners similarly view it as part of a multipolar financial architecture that reduces over-dependence on the United States dollar.
Economists argue that Africa stands to gain significantly.
Sub-Saharan Africa faces the highest remittance and transaction costs in the world, averaging nearly 8 percent per transfer.
Many payments between African and Chinese companies are currently routed through dollar-based intermediaries, adding 2–4 percent in conversion fees and causing delays of several days.
Direct access to CIPS can shrink settlement times to mere hours, enabling African traders—especially SMEs—to operate with greater liquidity and lower costs.
Experts estimate that reduced friction could boost trade volumes with China by 15–30 percent while improving working-capital cycles for importers and exporters.
The system also supports the African Union (AU’s) broader AfCFTA ambitions by encouraging African institutions to modernize their payment networks, harmonise digital financial infrastructure and reduce reliance on external currency conversions.
Analysts say this positions Africa to negotiate from a stronger footing as BRICS expands and as Global South economies push for diversified financial channels.
Ordinary Africans and financial commentators have applauded Standard Bank’s move.
Many social-media users praised the step as overdue, arguing that reliance on the U.S. dollar and SWIFT has long exposed African economies to external shocks and political vulnerabilities.
Others highlighted how the system would simplify everyday business transactions with Chinese partners and attract new clients to the bank.
As one economic scholar noted, the development is “not a mere technical upgrade but a strategic leap”—one likely to encourage other African banks to integrate with CIPS as the continent embraces a more multipolar financial future.
— CAJ News