Stanbic Bank Uganda has made a major breakthrough in Uganda-China trade after becoming the first bank in the country to connect to China’s Cross-Border Interbank Payment System (CIPS), enabling Ugandan businesses to make direct payments to Chinese suppliers in yuan.The development means traders dealing with Chinese companies can now settle transactions in renminbi without necessarily routing payments through intermediary currencies.
Stanbic says the new arrangement could lower foreign exchange costs, reduce exposure to currency fluctuations and make cross-border transactions faster and more efficient.The bank unveiled the new payment capability during the inaugural Stanbic-China Trade Forum, positioning the development as a practical solution to some of the financial challenges faced by Ugandan businesses engaged in trade with China.CIPS, launched by the People’s Bank of China in 2015, provides infrastructure for clearing and settling international payments denominated in renminbi, commonly known as the yuan. Stanbic’s connection to the system is expected to strengthen the financial links between Ugandan traders and Chinese businesses.
State Minister for Industry David Bahati described China as one of Uganda’s most important bilateral partners, saying improved financial connectivity could remove some of the barriers limiting deeper commercial and industrial cooperation between the two countries.Standard Bank Group Head of Business and Commercial Banking for Africa Regions and Offshore Andrew Mashanda said the next phase of Africa-China relations should go beyond trade volumes and focus more strongly on investment, manufacturing, value addition and infrastructure development.Stanbic Uganda Chief Executive Mumba Kalinfungwa said direct yuan settlement could give Ugandan companies a competitive advantage by improving payment speeds and reducing transaction-related costs. He added that the initiative could contribute to the government’s ambition of transforming Uganda’s economy into a USD 500 billion economy by 2040.The move comes as Uganda continues to record a huge trade imbalance with China. The country imported goods worth about $3.3 billion from China in 2025 but exported only $118 million worth of goods, leaving a trade deficit of more than $3.1 billion. Stanbic says easier access to yuan payments, together with its partnership with Guomao, a platform connecting businesses with one of Beijing’s major trading districts, could help Ugandan traders access Chinese suppliers while creating opportunities for local exporters to reach the Chinese market.
