Ecobank Group has signed an agreement with China’s Cross-Border Interbank Payment System (CIPS) to strengthen financial connections between Africa and China, creating new opportunities for businesses to reduce transaction costs and simplify international payments.
The agreement, signed in Beijing on October 10, 2026, is designed to expand Renminbi (RMB) payment and settlement services across Ecobank’s network of 34 African markets.
The move comes as trade between China and Africa continues to expand, increasing demand for faster and more affordable cross-border financial services.
Under the arrangement, Ecobank aims to connect its African banking network more directly with China’s payment infrastructure, allowing businesses to settle transactions in Chinese yuan with fewer intermediaries.
For African importers purchasing machinery, electronics and industrial materials from China, this could reduce the need to convert local currencies into US dollars before making payments.
Such additional conversions often expose businesses to exchange-rate fluctuations, transaction fees and settlement delays.
Ecobank Chief Executive Officer, Jeremy Awori, said the partnership would improve financial connectivity and support businesses operating across both markets.
Beyond reducing payment costs, the agreement could also provide African businesses with more currency options and reduce their dependence on dollar-based transactions.
China remains Africa’s largest trading partner, with bilateral trade reaching approximately $348 billion in 2025.
As commercial relationships deepen, efficient payment systems are becoming increasingly important for businesses seeking to expand across international markets.
According to DDM News, the development also has wider implications for Africa’s cost of capital.
Easier access to cross-border payments, improved currency options and stronger financial connections could help businesses manage trade-related risks and improve access to international funding.
Ecobank’s agreement also complements the Pan-African Payment and Settlement System (PAPSS), which facilitates payments between African countries using local currencies.
While PAPSS supports intra-African trade, CIPS could strengthen financial connections between the continent and China.
However, the benefits will depend on how effectively the arrangement is implemented, the availability of yuan liquidity and the transaction charges applied by participating financial institutions.
The partnership forms part of Ecobank’s broader strategy to strengthen its China-Africa business corridor.
The bank has maintained a presence in China since 2012 and recently inaugurated new office premises in Beijing to support trade, investment and financial cooperation.
For African businesses, the development could offer a more flexible way to conduct international transactions.
For the continent’s financial sector, it represents another step towards building stronger payment networks and diversifying access to global financial markets.
Source: Ecobank, African Business and Reuters.
