Standard Bank Group becomes 1st African bank to directly participate in China’s Cross-Border Payment System

* The system is designed to provide a more efficient, low-cost, and convenient way to conduct international RMB payments

* And serves as an alternative to the global SWIFT network for Chinese currency, Yuan-denominated transactions

By Duncan Mlanjira

Standard Bank Group has become the first African bank to participate directly in China’s Cross-Border Interbank Payment System (CIPS), a major milestone in facilitating Africa-China trade.

In a statement from Lilongwe, Standard Bank Malawi indicates that the system is designed to provide a more efficient, low-cost, and convenient way to conduct international Renminbi (RMB) payments — and serves as an alternative to the global SWIFT network for Chinese currency, the Yuan-denominated transactions.

While the service is currently live in South Africa, Standard Bank Malawi indicates that it will soon be extended to other markets, including Malawi.

CIPS enables cross-border payments in Chinese RMB, reducing transaction friction and accelerating settlement times. The innovation strengthens Africa’s connectivity with China, its largest trading partner.

Standard Bank Malawi Chief Executive, Phillip Madinga is quoted in the statement as saying: “As a Group, we have always embraced a pioneering spirit to deliver solutions that meet our clients’ evolving needs and support economic growth.

“The introduction of CIPS is another example of this commitment. Previously, we led the way with Africa-China Banking, which allows Malawians to order goods from government-certified suppliers in China while the bank manages the logistical complexities on their behalf.

“These initiatives reflect our dedication to simplifying trade and unlocking opportunities for businesses and individuals alike.”

Standard Bank Group emphasised that this achievement is not just a technical milestone, “it reflects its leadership in financial innovation and cross-border enablement”.

@By being the first African bank to join CIPS, the Group is reinforcing its role in connecting Africa to global trade corridors and creating solutions that empower businesses to thrive in a rapidly evolving economic landscape.”

Standard Bank Group maintains that it is “a keen advocate for Africa’s growth, and this new service is tailored to enable more integration with a key trading partner and offer our clients diverse options for optimising their operations”.

“Standard Bank Plc looks forward to offering CIPS to its clients as part of the Group’s phased rollout in the near future.”