Ecobank, one of Africa's largest banking groups, plans to join China's Cross-Border Interbank Payment System (CIPS) to facilitate yuan transactions, as rising trade between Africa and China drives demand for direct settlement options.

Group CEO Jeremy Awori told Reuters that the bank would sign an agreement to join the platform in China on October 17, 2026. Ecobank, headquartered in Lomé, Togo, operates in 34 African countries and is also in talks with Bank of China to jointly offer yuan settlement services.

CIPS connects more than 5,000 banks across over 100 countries and territories, providing infrastructure for international payments denominated in the Chinese currency. Launched in 2015 under the oversight of the People's Bank of China, the system handles clearing and settlement for cross-border yuan payments.

Ecobank's planned entry follows a wave of African adoption of the network. South Africa's Standard Bank became the first African lender to connect directly to CIPS in November 2025, while Rwanda's Bank of Kigali has also joined the system. Angola's Banco de Fomento Angola is planning to follow. The moves point to a broader effort among African lenders to build direct payment links with China as bilateral commerce grows. If the October 17 agreement is signed as planned, Ecobank would add a lender with a presence in 34 African countries to that roster.

Standard Bank had facilitated more than 8 billion yuan (roughly $1.2 billion) in transactions through CIPS by July 2026, a milestone that demonstrated the growing use of the infrastructure for Africa-China payments. Separately, Bank of China approved a yuan clearing hub spanning 19 African markets, broadening access to renminbi settlement across the continent.

African businesses have traditionally converted local currencies into U.S. dollars before exchanging them for yuan to pay Chinese suppliers, with the dollar-based process adding conversion steps and associated costs for importers. Direct yuan settlement could reduce conversion costs, limit exposure to dollar shortages, and simplify cross-border payments.

China-Africa trade rose nearly 18% in 2025, according to Chinese customs data, strengthening incentives for African banks to expand payment links with the country. Beijing, for its part, is seeking to increase the yuan's international use.

The expansion of yuan payment infrastructure does not necessarily signal a broad shift away from the dollar, which remains dominant in global trade and foreign exchange reserves. Instead, it gives African businesses and banks additional settlement options as commercial ties with China deepen. For Ecobank, the October 17 signing and the outcome of its talks with Bank of China are the next developments to watch as its yuan settlement plans take shape.

Source: BitcoinKE