Standard Bank just became the first African lender to plug straight into China's payment network called CIPS, which lets them move money in yuan without touching US dollars. The setup means companies trading between Africa and China can skip the middleman currency and save up to 30 percent on fees while getting their cash way faster, sometimes in minutes instead of days.
The bank got its license earlier this year and is leaning on its partnership with ICBC, which has owned a chunk of Standard Bank since way back in 2007. Trade between the continents hit over 4.5 trillion rand last year, and this direct payment channel could be massive for exporters and smaller businesses that get hammered by conversion costs. Analysts think other African banks might copy the move and build out a yuan payment ecosystem across the continent.
The bank got its license earlier this year and is leaning on its partnership with ICBC, which has owned a chunk of Standard Bank since way back in 2007. Trade between the continents hit over 4.5 trillion rand last year, and this direct payment channel could be massive for exporters and smaller businesses that get hammered by conversion costs. Analysts think other African banks might copy the move and build out a yuan payment ecosystem across the continent.
