Menu

Stanbic Bank Kenya last week introduced direct renminbi (RMB) settlement through China’s Cross-Border Interbank Payment System (CIPS), a development that strengthens Africa-China trade connectivity and mirrors ongoing efforts by the Central Bank of Nigeria (CBN) to ease cross-border transactions with China.

Unveiled in Nairobi, the service places Stanbic among the first African banks to offer direct CIPS connectivity, reducing reliance on correspondent banks and providing businesses with greater certainty when settling payments with Chinese partners. The move comes as African economies seek faster, cheaper and more predictable settlement channels to support growing trade with China.

Jonathan Muga, Stanbic Kenya’s head of corporate and investment banking, said the initiative reflects the evolution of Kenya-China economic relations from infrastructure-led cooperation to broader engagement across manufacturing, technology, logistics and industrial development. “China remains Kenya’s largest trading partner, and we continue to see growing opportunities for Kenyan businesses to export into the Chinese market,” he said.

Nigeria’s policy context

Nigeria has pursued similar reforms. Over the past decade, the CBN has introduced several measures to ease Nigeria–China trade flows, including a bilateral currency swap agreement between the CBN and the People’s Bank of China (PBoC). The swap was designed to provide RMB liquidity for Nigerian importers and to reduce pressure on the naira during high-volume China-linked trade cycles.

The CBN has also authorised Nigerian banks to open RMB accounts and issue RMB-denominated letters of credit, improving settlement predictability for manufacturers and traders. Other measures include integrating RMB into Nigeria’s FX operations for eligible transactions, enabling businesses to avoid multiple currency conversions.

In addition, the CBN has supported fintech-enabled trade platforms that streamline documentation, compliance and payment processes for China-linked imports and exports. These efforts align with Nigeria’s broader strategy to reduce transaction friction, strengthen supply chain resilience, and deepen investment ties with China – now one of Nigeria’s largest trading partners and a major source of infrastructure financing.

CIPS connectivity and Africa-China trade

Stanbic executives emphasised that direct CIPS access significantly shortens payment processing times – often to within hours, depending on time zones – while improving transparency, traceability and predictability. Caleb Muriuki, a Stanbic transaction-banking executive, said the bank’s digital and branch channels have been configured to automatically route eligible RMB transactions through CIPS, without requiring clients to change their existing processes.

He added that the new capability strengthens Stanbic’s role as a financial bridge between African and Chinese businesses, drawing on the Standard Bank Group’s continental footprint and international partnerships.

Implications for Nigeria

For Nigeria, Stanbic Kenya’s move underscores the growing importance of RMB settlement infrastructure across Africa. As Nigerian banks expand their China-focused capabilities, supported by CBN reforms, direct connectivity to CIPS or similar channels could further reduce settlement delays, lower transaction costs for import-dependent sectors and improve the operating environment for Nigerian firms trading with China.

As China’s commercial presence in Africa expands across manufacturing, logistics, renewable energy and digital technology, efficient payment infrastructure is becoming as critical as trade agreements and investment flows. Nigeria’s policy direction suggests that more RMB-linked innovations may emerge as part of its broader strategy to modernise cross-border payments and strengthen economic ties with Asia’s largest economy.