China Approves Standard Bank, ICBC As Africa’s Yuan Clearing

China’s central bank has authorised Standard Bank and the Industrial and Commercial Bank of China (ICBC) to provide Renminbi (RMB) clearing services across Africa, marking a significant step in Beijing’s efforts to expand the international use of its currency.

The approval, granted by the People’s Bank of China (PBOC), gives businesses and financial institutions across the continent direct access to China’s onshore financial system for the first time. This includes access to China’s capital markets and liquidity infrastructure, making cross-border trade and investment transactions more efficient.

The latest development forms part of China’s broader strategy to internationalise the yuan and reduce reliance on the global financial system, which is largely dominated by the U.S. dollar.

Last week, PBOC Governor Pan Gongsheng announced several new initiatives during the annual Lujiazui Forum in Shanghai aimed at promoting offshore yuan transactions. Among the measures was the approval for six major state-owned Chinese banks to conduct offshore yuan business within Shanghai’s free trade zone.

Under the new arrangement, Standard Bank and ICBC will jointly operate as the “Renminbi Clearing Bank of Africa,”with the capacity to clear RMB transactions across 19 African countries, Standard Bank said in a statement released on Friday.

The move comes as economic ties between China and Africa continue to strengthen. According to Chinese customs data, trade between China and Africa increased by nearly 18 percent last year. In addition, Beijing removed all tariffs on imports from 53 African countries effective May 1.

Speaking on the development, Richard de Roos, Head of Operations for Corporate and Investment Banking at Standard Bank, said the new status would further strengthen the bank’s role in facilitating trade between Africa and China.

“China is Africa’s largest export market, and with clearing status added to CIPS participation, Standard Bank is even better placed to support Africa’s trade with China,” he said, expressing confidence that demand for RMB clearing services would continue to grow.

Standard Bank made history in November 2025 as the first African financial institution to join China’s Cross-Border Interbank Payment System (CIPS). According to the bank, it processed approximately $500 million in transactions during its first four months of participation, driven mainly by physical trade activities.

The bank also highlighted changing trade patterns across the continent. According to its latest Africa Trade Barometer, Asian countries have become the preferred trading partners for 35 percent of businesses across ten African markets, up from 24 percent in 2024. The report also found that 67 percent of respondents identified China as their leading source of business inputs.

The latest approval is expected to further simplify trade settlements, improve access to yuan liquidity, and strengthen financial cooperation between China and African economies.