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Kampala, Uganda | THE INDEPENDENT | Stanbic Bank Uganda has become the first financial institution in the country to integrate with China’s Cross-Border Interbank Payment System (CIPS), a move expected to simplify cross-border transactions, reduce foreign exchange risks and strengthen trade between Uganda and China.
The new payment platform enables Ugandan businesses to make direct settlements in Chinese Yuan (RMB), eliminating the need for intermediary currencies and improving the speed and efficiency of international payments.
The launch comes as trade between the two countries continues to grow. Uganda imported goods worth US$3.3 billion from China in 2025, while exports to the Asian nation stood at US$118 million. The bank says the new platform will lower transaction costs for importers while making it easier for Ugandan exporters to access Chinese buyers.
The payment system was unveiled during the inaugural Stanbic–China Trade Forum held in Kampala on August 4.
Speaking at the event, the Minister of State for Industry, David Bahati, described the platform as a timely solution to long-standing payment and data challenges that have affected trade between Uganda and China.
“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.
Introduced by the People’s Bank of China in 2015, CIPS is the country’s official clearing and settlement infrastructure for cross-border transactions conducted in Renminbi (RMB).
Andrew Mashanda, Standard Bank Group’s Head of Business and Commercial Banking for Africa Regions and Offshore, said the integration aligns with the group’s broader strategy of supporting Africa’s economic growth through trade and investment.
“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,” Mashanda said.
He added that Uganda’s strategic location as a gateway to East Africa presents significant opportunities to attract Chinese investment and deepen commercial partnerships.
“With Uganda increasingly becoming a gateway into East Africa’s fast-growing regional economy, we must continue unlocking investment opportunities for Chinese partners and create an environment conducive to shared prosperity,” he said.
Stanbic Bank Uganda Chief Executive Mumba Kalifungwa said the introduction of CIPS marks a major milestone in modernising trade finance and reducing dependence on intermediary currencies for cross-border payments.
“The system will give Ugandan businesses a competitive edge and significantly contribute to government’s efforts to grow the economy ten times to reach US$500 billion by 2040,” Kalifungwa said.
He noted that direct RMB settlement through CIPS will reduce foreign exchange volatility, accelerate payment processing and strengthen commercial relationships between Ugandan and Chinese businesses.
In addition to the payment platform, Stanbic Bank said Ugandan importers will benefit from its partnership with Guomao, a platform that connects local businesses to one of Beijing’s largest trading districts, expanding sourcing opportunities and improving market access for traders.
The bank expects the combined initiatives to support smoother trade flows, lower transaction costs and enhance Uganda’s participation in one of its most important bilateral trading relationships.
