Stanbic opens direct Yuan payments for Ugandans

• Stanbic has opened direct yuan payments for Ugandan businesses trading with China.

• The bank is the first financial institution in Uganda to connect to CIPS.

• Uganda imported $3.3 billion from China in 2025 but exported only $118 million.

• The bank says the system could cut transaction costs and reduce foreign exchange risks.

Stanbic Bank Uganda has connected to China’s Cross-Border Interbank Payment System (CIPS), allowing Ugandan businesses to pay Chinese suppliers directly in yuan.

The bank becomes the first financial institution in Uganda to join the system.

The move reduces the need for businesses to first convert payments through intermediary currencies when trading with China. Stanbic says this could cut foreign exchange costs, reduce exposure to currency swings and speed up transactions.

The People’s Bank of China launched CIPS in 2015 to support the clearing and settlement of cross-border payments made in renminbi, also known as the yuan.

Stanbic announced the development during the inaugural Stanbic-China Trade Forum.

State Minister for Industry David Bahati said China remains one of Uganda’s most important trading partners.

"China is one of Uganda’s most significant bilateral partners. This solution removes key bottlenecks and opens practical pathways for deeper industrial and commercial collaboration," Bahati said.

Standard Bank Group Head of Business and Commercial Banking for Africa Regions and Offshore Andrew Mashanda said Africa-China relations should increasingly focus on investment, manufacturing and value addition.

"Africa–China trade has been a key driver of growth across the continent. The next chapter will be defined not just by trade volumes, but by what we build together: manufacturing capacity, value addition, and infrastructure. We must continue unlocking investment opportunities for Chinese partners and create an environment conducive to shared prosperity," Mashanda said.

Stanbic Uganda Chief Executive Mumba Kalinfungwa said the payment system could give local companies an advantage when dealing with Chinese businesses.

"The system will give Ugandan businesses a competitive edge and significantly contribute to the government’s efforts to grow the economy ten times to reach USD 500 billion by 2040," Kalinfungwa said.

Kalinfungwa said direct yuan settlement could also improve payment speeds and strengthen commercial ties between businesses in the two countries.

The development comes against a wide trade imbalance between Uganda and China.

Uganda imported goods worth $3.3 billion from China in 2025, while its exports to the Chinese market stood at $118 million.

This left Uganda with a trade deficit of more than $3.1 billion.

Stanbic hopes easier yuan payments will lower costs for Ugandan importers while also helping local exporters connect with Chinese buyers.

The bank has also partnered with Guomao, a platform that links businesses to one of Beijing’s major trading districts.

The partnership is expected to support Ugandan traders seeking suppliers and market access in China.