China has approved Standard Bank Group and the Industrial and Commercial Bank of China (ICBC) to operate Africa’s first Renminbi (RMB) clearing hub, a move expected to make trade and cross-border payments between China and African countries faster, cheaper and more efficient.
The approval, granted by the People’s Bank of China, will allow businesses to settle transactions directly in Chinese yuan instead of relying on the US dollar or other intermediary currencies. The new arrangement is expected to reduce foreign exchange costs, speed up payment processing and simplify trade transactions.
The RMB clearing hub will serve the 19 African markets where Standard Bank operates, strengthening financial links between the continent and one of its largest trading partners.
Standard Bank’s Head of Operations for Corporate and Investment Banking, Richard de Roos, said the initiative would improve trade and investment flows 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.
For Kenya, the development is expected to reduce transaction costs for businesses importing goods from China while making it easier for exporters to sell products such as tea, coffee and avocados to the Chinese market.
China remains Kenya’s largest source of imports. According to the Kenya National Bureau of Statistics (KNBS), Kenya imported goods worth Sh642.9 billion from China in 2024, while exports to the Asian country totaled Sh32.8 billion during the same period.
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