Bank of Kigali has become the first Rwandan lender to join China’s Cross-border Interbank Payment System, marking another step towards greater use of the yuan in trade transactions between Africa and China.
The move enables Rwanda’s largest commercial bank to settle eligible transactions directly in China’s currency rather than depending exclusively on intermediary dollar-based payment arrangements.
CIPS is China’s cross-border payment and settlement infrastructure for transactions denominated in renminbi, or yuan.
Bank of Kigali’s entry therefore gives Rwandan businesses dealing with Chinese suppliers and customers another settlement option.
African Banks Explore Yuan Settlement
The development follows a similar move by South Africa’s Standard Bank Group.
According to the supplied information, Standard Bank became Africa’s first direct CIPS participant in November 2025 and had facilitated transactions worth more than $1.2 billion by July 2026.
Absa and Ecobank are also exploring direct yuan-payment options for clients.
The trend comes as trade between China and African economies continues across infrastructure, mining, manufacturing, energy and consumer goods.
Using yuan directly for some transactions could potentially reduce the number of currency conversions required when an African company trades with a Chinese counterpart.
Traditionally, a transaction may involve converting a local African currency into dollars before eventually settling obligations in yuan.
Direct settlement can simplify that process in suitable transactions, although the US dollar remains deeply embedded in global trade and finance.
China’s African Economic Footprint Expands
China has become an important commercial partner for many African economies through trade, infrastructure financing and investment.
Its companies have substantial involvement in construction, mining, telecommunications, manufacturing and energy projects across the continent.
For African banks, increasing trade volumes create demand for payment infrastructure capable of supporting customers conducting business with Chinese counterparties.
Bank of Kigali’s decision consequently reflects a broader banking trend rather than simply a currency decision.
The longer-term significance will depend on how many customers choose yuan settlement and whether more African financial institutions establish direct links with CIPS.
