A new yuan settlement route sparks debate across Africa-China trade circles
Pan-African banking group Ecobank has moved to deepen its financial ties with China, signing a memorandum of understanding with CIPS, China’s cross-border interbank payment system, in Beijing on 10 October 2026. The deal is designed to make it easier for African companies and their Chinese counterparts to settle transactions in renminbi — the Chinese currency also known as the yuan. The signing took place on the sidelines of an official visit to China by Togolese Council president Faure Gnassingbé, with Togo’s minister of finance and budget, Essowè Georges Barcola, in attendance.
What the agreement is meant to deliver
Under the arrangement, Ecobank and CIPS aim to expand yuan payment and clearing capacity between Africa and China, streamline cross-border settlements and give businesses better access to financial channels. Ecobank, headquartered in Lomé and operating in 34 African markets, wants to serve importers, exporters and investors active along the China-Africa corridor more effectively.
Fewer hurdles for cross-border transactions
For companies, international payments often come with delays, fees and multiple currency conversions. Using the yuan creates an additional option to settle certain trade operations directly with China. It can reduce the complexity of those transactions, even though the agreement does not mean that all payments between Africa and China will now be made in Chinese currency.
Why the timing matters
The rapprochement comes amid a sharp rise in Sino-African trade, which reached around $348 billion in 2025, according to figures cited by Ecobank. China remains the continent’s leading trading partner. Against that backdrop, payment and settlement infrastructure has become a significant issue for businesses trading between the two regions.
A broader push into the Chinese market
Ecobank has had a presence in China since 2012 and is opening new offices in Beijing. The location serves as a contact point for Chinese companies, financial institutions and investors looking to expand their activities in Africa. The group also relies on teams dedicated to Chinese clients in West, Central and East Africa, as well as its trade finance, payment and treasury management services.
The CIPS partnership adds to other Ecobank initiatives, including cooperation with Bank of China (Mauritius) and cross-border payment platforms such as XTransfer, YeePay and WorldFirst. It forms part of a strategy to connect the group’s African banking network more closely with Chinese businesses.
Reactions and what comes next
The move is being watched closely by businesses, banks and analysts who see it as part of the yuan’s internationalisation and a diversification of settlement options. It does not, however, mean the dollar immediately loses its dominant place in global trade: yuan payments represent an additional channel, and how far it grows will depend on adoption by companies and banks.
For now, the key question is whether African firms will embrace the new route in sufficient numbers to make a real difference to costs and processing times.
