Stanbic Bank Uganda has connected to China’s Cross-Border Interbank Payment System (CIPS), giving Ugandan businesses a direct channel to settle transactions in Chinese yuan.
The move reduces the need to convert payments through intermediary currencies when conducting business with China. It could also cut foreign exchange costs and shorten settlement times.
Stanbic becomes the first financial institution in Uganda to connect to CIPS. The development follows the introduction of renminbi payment processing by its Kenyan counterpart as China-Africa trade continues to grow.
The People’s Bank of China launched CIPS in 2015 to provide clearing and settlement services for cross-border transactions denominated in renminbi, also known as the yuan.
Stanbic announced the integration during the inaugural Stanbic-China Trade Forum.
State Minister for Industry David Bahati said the payment system would remove some of the barriers affecting trade between Uganda and China.
"China is one of Uganda’s most significant bilateral partners. This solution removes key bottlenecks and opens practical pathways for deeper industrial and commercial collaboration," Bahati said.
Andrew Mashanda, Standard Bank Group’s Head of Business and Commercial Banking for Africa Regions and Offshore, said Africa and China should now look beyond expanding trade volumes.
"Africa–China trade has been a key driver of growth across the continent. The next chapter will be defined not just by trade volumes, but by what we build together: manufacturing capacity, value addition, and infrastructure. We must continue unlocking investment opportunities for Chinese partners and create an environment conducive to shared prosperity," Mashanda said.
Stanbic Uganda Chief Executive Mumba Kalinfungwa said the system would improve the competitiveness of Ugandan businesses trading with China.
"The system will give Ugandan businesses a competitive edge and significantly contribute to the government’s efforts to grow the economy ten times to reach USD 500 billion by 2040," Kalinfungwa said.
He said direct renminbi settlement through CIPS could reduce exposure to foreign exchange volatility, speed up payments and strengthen business ties between Uganda and China.
The development comes as China maintains its position as one of Uganda’s major sources of imports.
Uganda imported goods worth $3.3 billion from China in 2025, compared with exports worth $118 million to the Chinese market. The figures leave Uganda with a trade deficit of more than $3.1 billion.
Stanbic hopes the new payment arrangement will help Ugandan exporters reach more Chinese buyers while reducing transaction costs for businesses importing goods from China.
The bank has also partnered with Guomao, a platform that connects businesses to one of Beijing’s major commercial districts. The partnership will help Ugandan traders source goods and access markets in China.
The CIPS connection adds another payment option for Ugandan companies as commercial ties between Kampala and Beijing expand.
