Bank of Kigali has become a direct participant in China’s Cross-Border Interbank Payment System (CIPS), the first bank in Rwanda, and the first headquartered in East or Central Africa, to do so, The Condia reported. The agreement was signed on 8 September in Xiamen, China.
What is CIPS?
CIPS is China’s system for clearing and settling cross-border payments in renminbi (yuan). The People’s Bank of China launched it in 2015 to reduce reliance on the US dollar and Western payment networks for trade with China. It works alongside SWIFT, using compatible message formats, rather than replacing it.
Direct participants can process yuan payments without going through several intermediary banks, which means faster settlement and lower costs. Indirect participants must go through a direct member.
Why Rwanda wants it
- China is Rwanda’s largest trading partner, supplying 26.7% of its imports in the first quarter of 2026.
- Trade between the two countries reached about $1.76 billion in 2024.
- Bank of Kigali already offers Alipay transfers to China and plans to double its Chinese partner banks from three to six by the end of 2026.
Africa and CIPS
Standard Bank was the first African bank to join CIPS directly and can clear yuan transactions in 19 African countries. As of June 2026, CIPS had 210 direct and 1,619 indirect participants worldwide, including 103 indirect participants in Africa.
Why it matters for Nigeria
Nigerian importers buy huge volumes of goods from China and often struggle to get dollars. The CBN signed a currency swap deal with the People’s Bank of China in 2018, renewed since, to make yuan available for trade. More direct yuan payment routes in Africa could reduce the cost of paying Chinese suppliers, though most Nigerian trade is still settled in dollars.
Source: The Condia.
