Expanding RMB payments, financing in Africa

China and Africa are stepping up efforts to make the renminbi a go-to currency for cross-border trade, as the Industrial and Commercial Bank of China and South Africa's Standard Bank Group unveiled 10 measures in Beijing on Monday to expand RMB payments, financing and clearing services across the continent, tapping growing trade ties to accelerate the currency's internationalization.

In June, the People's Bank of China authorized ICBC and Standard Bank Group to serve as the joint RMB clearing bank for Africa, marking the first time Chinese and foreign banks have been jointly authorized to take on such a role in a region.

ICBC Chairman Liao Lin said on Monday that the two banks will leverage their positions as the largest commercial banks in China and Africa, respectively, to upgrade their clearing networks, financing systems and cooperation mechanisms. Their appointment as the joint RMB clearing bank will provide an opportunity to make the currency a more accessible, reliable and convenient option for Chinese and African businesses, deepening bilateral economic and trade ties.

ICBC will continue expanding the coverage of the Cross-border Interbank Payment System, also known as CIPS, among African institutions and developing panda bonds, direct currency conversion and cross-border custody services to facilitate RMB investment and financing flows, Liao said.

ICBC and Standard Bank Group will jointly establish an interbank financing facility worth more than 10 billion yuan ($1.49 billion) to provide African financial institutions with ample RMB liquidity. The banks will also publish a guide to RMB use in 19 African countries, offering a comprehensive overview of cross-border RMB policies, products and application scenarios, added Liao.

Lin Zhenhui, deputy director-general of the PBOC's macroprudential policy bureau, said the RMB has become China's largest settlement currency for cross-border receipts and payments, the world's second-largest trade finance currency and, measured across all payment channels, the third most-used currency for global payments.

More than 10,000 overseas institutions from over 80 countries and regions have invested in China's financial markets, holding more than 10 trillion yuan in RMB-denominated assets, Lin said.

The PBOC has signed bilateral local currency swap agreements with the central banks of South Africa, Egypt, Nigeria and Mauritius. Cross-border RMB settlement services now cover virtually all African countries and regions. In 2025, cross-border RMB receipts and payments related to China-Africa goods trade increased 40 percent year-on-year, he said.

"The RMB currently offers relatively low interest rates, a stable value and convenient usability, and a wide range of applications has developed across Africa. Some of these usage cases are rarely seen in other countries," Lin said.

China-Africa trade hit a record $348.05 billion in 2025 and has grown 22.3 percent year-on-year in US dollar terms in the first nine months of this year, the General Administration of Customs said.

Sim Tshabalala, CEO of Standard Bank Group, said RMB internationalization was not merely an abstract financial market issue for the bank, but a practical matter for its clients.

The 10 measures jointly launched by ICBC and Standard Bank Group aim to establish a comprehensive RMB service for the African market and support economic and trade flows between China and Africa, Tshabalala said.

The two banks plan to strengthen RMB clearing connectivity across Africa and expand clients' access to the currency through CIPS.

"At the moment, we've seen a large migration of clients onto CIPS, so the ability to make payments into China directly via CIPS has created a tremendous opportunity, and we've seen the growth in usage there," said Richard de Roos, head of group payments at Standard Bank Group.