RMB use expands in Africa amid growing financial connectivity and trade
Guests celebrate the launch of Stanbic Bank Tanzania's direct RMB settlement service in Dar es Salaam, Tanzania, Aug. 12, 2026. (Xinhua/Nurdin Pallangyo)China's currency, the renminbi (RMB), is playing a bigger role in Africa as trade with the continent flourishes. From the launch of direct RMB settlement services in Tanzania to expanded connectivity with the Cross-Border Interbank Payment System (CIPS) in Kenya and Namibia, as well as the establishment of RMB clearing arrangements for Africa, such recent developments highlight the growing role of the Chinese currency in cross-border transactions.As China-Africa trade continues to expand, the RMB is being used not only for trade settlement, but increasingly for payment and clearing and, more recently, for financing. This expansion is driven by growing demand from China-Africa trade and investment, while an improved financial infrastructure is making cross-border RMB transactions more accessible.CROSS-BORDER RMBThe international use of a currency is closely linked to demand generated by trade and investment. Deepening economic ties between China and Africa are providing stronger support for the wider use of the RMB in cross-border transactions.In August, Stanbic Bank Tanzania launched a direct RMB settlement service, allowing Tanzanian businesses trading with China to make and receive payments directly in RMB.Direct RMB settlement can reduce unnecessary currency conversions and provide businesses with an additional payment option, Tanzanian Deputy Minister for Industry and Trade Dennis Londo said.In Zambia, the RMB has also been used for mining tax payments. The country's central bank began accepting RMB payments for mining taxes in October 2025.For Zambia, where copper exports are a major economic pillar and China is a key trading partner, the RMB payment channel provides businesses and the government with another option for managing foreign exchange needs.According to the People's Bank of China's RMB Internationalization Report 2025, cross-border RMB receipts and payments between China and Africa totaled 155.33 billion yuan (23.14 billion dollars) in 2024, up 28.1 percent year on year. RMB receipts and payments related to trade in goods reached 56.37 billion yuan (8.4 billion dollars), up 35.9 percent.From 2020 to 2024, cross-border RMB settlement between China and Africa nearly doubled, rising from 80.02 billion yuan (11.92 billion dollars) to 155.33 billion yuan (23.14 billion dollars), representing an average annual growth rate of 18.1 percent.For businesses, the appeal of using the RMB is straightforward. When trading partners have regular RMB payment and receipt needs, settling transactions directly in RMB can reduce conversion costs and help mitigate exchange-rate risks.With China granting zero-tariff treatment to 53 African countries with which it has diplomatic relations, trade facilitation between China and Africa is expected to improve further, potentially generating additional demand for cross-border RMB services.
