The recent agreement between pan-African banking group Ecobank and China’s Cross-Border Interbank Payment System (CIPS) has sparked a wave of reactions across Africa’s financial and business communities. Signed on 10 October 2026 in Beijing, the memorandum of understanding aims to facilitate renminbi — also known as yuan — settlements between African companies and their Chinese counterparts. The signing took place alongside the official visit to China by Togolese Council President Faure Gnassingbé, with Togo’s Minister of Finance and Budget, Essowè Georges Barcola, in attendance. The deal is expected to expand yuan payment and clearing capacities between the two regions, streamline cross-border settlements, and improve corporate access to financial circuits. Ecobank, headquartered in Lomé and operating in 34 African markets, seeks to better support importers, exporters, and investors active in the China-Africa corridor.
Immediate fallout: what the agreement changes for businesses
For companies, international payments often involve delays, fees, and multiple currency conversions. The use of yuan provides an additional option to settle certain trade operations directly with China. It can reduce the complexity of the transactions involved, even though the agreement does not mean that all payments between Africa and the China will now be made in Chinese currency. The move comes amid a strong surge in Sino-African trade, which reached approximately $348 billion in 2025, according to data cited by Ecobank and Ecofin Agency. China remains the continent’s leading trading partner. In this context, payment and settlement infrastructure is becoming a key issue for businesses trading between the two regions.
Public debate: a step toward yuan internationalisation or a limited tool?
The partnership with CIPS adds to other Ecobank initiatives, including its cooperation with Bank of China (Mauritius) and cross-border payment platforms such as XTransfer, YeePay, and WorldFirst. It is part of a strategy to better connect the group’s African banking network with Chinese businesses. This development contributes to the internationalisation of the yuan and the diversification of settlement methods. However, it does not mean that the dollar will immediately lose its dominant place in global trade: yuan payments constitute an additional channel, the scale of which will depend on its adoption by companies and banks. Reactions from market observers have been mixed, with some seeing it as a pragmatic solution to reduce costs, while others question whether it will gain enough traction to challenge established currency patterns.
Looking ahead: adoption challenges and the road to wider use
Ecobank has been present in China since 2012 and is opening new offices in Beijing. This presence serves as a contact point for Chinese companies, financial institutions, and investors looking to develop their activities in Africa. The group also relies on dedicated teams for Chinese clients in West, Central, and East Africa, as well as its trade finance, payment, and cash management services. As the agreement moves from signature to implementation, the key question is whether African businesses will embrace the yuan channel at scale. The coming months will reveal whether this new infrastructure can overcome operational hurdles and truly shift payment habits in the Africa-China trade corridor.