Africa’s largest lender wins China approval to clear yuan payments across 19 African countries in major trade shift.

The new clearing arrangement is expected to benefit African companies importing machinery, industrial equipment, electronics, vehicles and manufactured goods from China.

By settling eligible transactions directly in yuan, businesses could reduce foreign-exchange conversion costs, shorten settlement times and limit exposure to fluctuations in the US dollar, an important consideration for companies operating in markets where access to hard currency remains constrained.

The arrangement is also a milestone for China’s financial engagement with Africa. It is the first RMB clearing bank established on a continent-wide basis and the first jointly operated by two commercial banks, providing participating institutions with access to China’s capital markets, liquidity facilities and payment infrastructure.

Richard de Roos, Head of Operations for Corporate and Investment Banking at Standard Bank, said the approval would strengthen commercial ties between Africa and China.

“This new service will provide our clients with transparent, efficient and cost-effective payment solutions between China and Africa, supporting trade and investment between the world’s most dynamic economies,” he said.