Stanbic Bank Uganda has opened direct yuan payments for businesses trading with China, marking a major shift in how Ugandan importers and exporters can settle cross-border transactions.
The bank has become the first financial institution in Uganda to integrate with China’s Cross-Border Interbank Payment System, commonly known as CIPS. The move allows eligible businesses to settle transactions directly in Chinese yuan, also known as renminbi or RMB, instead of routinely routing payments through intermediary currencies such as the US dollar.
Stanbic expects the new arrangement to make Uganda-China payments faster and more predictable while reducing some of the foreign exchange risks and additional costs associated with converting between several currencies.
How direct yuan payments will work in Uganda
Previously, a Ugandan business buying products from a Chinese supplier could face multiple currency conversions during the payment process.
A payment might involve converting Uganda shillings into US dollars before the funds were eventually converted into Chinese yuan for the recipient.
CIPS creates a more direct route for RMB-denominated transactions.
Stanbic says businesses involved in cross-border trade with China can now denominate transactions in RMB, potentially reducing exchange-rate exposure while improving pricing stability for importers and exporters.
According to reporting on the rollout, the system could reduce some international settlement periods from several days to just a few hours. It also reduces dependence on multiple intermediary banks, which can add both delays and charges to cross-border payments.
What is CIPS?
CIPS stands for Cross-Border Interbank Payment System.
It was launched by the People’s Bank of China in 2015 as infrastructure for clearing and settling cross-border transactions denominated in renminbi.
Stanbic Bank Uganda’s connection is facilitated through the wider Standard Bank network. Standard Bank became the first African bank to join CIPS in November 2025.
The expansion comes as use of the Chinese currency in African trade gradually increases.
China authorised Standard Bank and the Industrial and Commercial Bank of China in June 2026 to provide renminbi clearing services across 19 African countries, further expanding infrastructure for yuan-denominated transactions on the continent.
Direct yuan payments target booming Uganda-China trade
The launch is particularly significant because China has become one of Uganda’s most important commercial partners.
Stanbic Bank figures show Uganda imported goods worth about $3.3 billion from China in 2025 while exporting approximately $118 million to the Chinese market.
That imbalance means the payment system could have an immediate impact on Ugandan importers who regularly pay Chinese manufacturers and suppliers.
Businesses sourcing electronics, machinery, industrial equipment, construction materials, textiles and other products from China may benefit from having an additional option to settle directly in RMB.
For exporters, easier settlement could also help businesses seeking to sell more Ugandan products into the Chinese market.
Businesses could avoid double currency conversions
One of the biggest potential advantages of direct yuan payments is reducing unnecessary foreign exchange conversions.
When businesses must move from Uganda shillings to dollars and then from dollars to yuan, each conversion can introduce another exchange-rate spread.
Exchange rates may also move while payments are being processed.
Stanbic says allowing China-related transactions to be denominated directly in RMB can reduce some of this risk and potentially improve pricing stability.
This does not mean currency-conversion costs disappear entirely. The cost will depend on the currencies involved, prevailing exchange rates and individual transaction arrangements.
However, removing an unnecessary intermediary currency can simplify the payment chain.
Payments could move from days to hours
Speed is another major selling point.
Traditional international transactions can pass through several correspondent banks before reaching the final recipient.
Under the new system, settlement timelines for some transactions are expected to fall from several days to just a few hours. Businesses should also gain better visibility into the status of payments, making it easier to identify and resolve delays.
Faster settlement can be particularly important for importers operating under tight shipping, production or supplier-payment schedules.
It could also help businesses plan cash flow more accurately.
What will Stanbic charge for yuan transactions?
The payment system will still carry banking and foreign exchange costs.
According to details reported on the service, outward telegraphic transfers are charged the equivalent of Shs60,000 per transaction, excluding external correspondent-bank charges.
Inward transfers carry a fee equivalent to 0.25 percent of the transaction value, subject to reported minimum and maximum charges.
Foreign exchange conversions involving the Uganda shilling, dollar and Chinese yuan will also include a spread determined by Stanbic’s Global Markets division according to prevailing market conditions.
Stanbic also provides yuan-denominated accounts for customers involved in China-related trade.
Stanbic says system could boost Uganda-China investment
Stanbic Uganda Chief Executive Mumba Kalifungwa said the integration represents an important step in modernising trade facilitation and reducing reliance on intermediary currencies.
The bank says direct RMB settlement can reduce foreign exchange volatility, speed up transactions and strengthen commercial links between Ugandan and Chinese companies.
Kalifungwa also said cumulative Chinese foreign direct investment in Uganda had exceeded $1 billion, with licensed investments estimated at around $1.2 billion.
China remains an important investor in sectors including manufacturing, infrastructure, industry and energy.
Government welcomes direct yuan payments
Uganda’s State Minister for Industry, David Bahati, welcomed the new payment arrangement during its launch.
He described China as an important commercial and industrial partner and said the platform could address long-standing challenges affecting payments between businesses in the two countries.
The launch formed part of the inaugural Stanbic-China Trade Forum.
Beyond payments, Stanbic is also working with Guomao, a platform designed to connect Ugandan businesses with suppliers and commercial opportunities in one of Beijing’s major trading districts.
What direct yuan payments mean for Ugandan traders
For Ugandan businesses, the development is less about replacing the US dollar entirely and more about creating another option for trade with China.
The dollar remains dominant in international commerce, while broader African use of the yuan is still developing. Recent trends nevertheless show more African banks, governments and companies exploring RMB settlement where trade relationships with China make it practical.
For a Ugandan importer purchasing directly from a Chinese company, being able to quote, invoice and settle in the supplier’s own currency could simplify transactions.
The real benefit to individual businesses will depend on exchange rates, fees, transaction sizes and the payment terms offered by suppliers.
Still, Stanbic’s introduction of direct yuan payments gives Ugandan traders another tool for managing the rapidly expanding commercial relationship between Uganda and China.
As trade between the two countries grows, faster RMB settlement could become increasingly important for businesses seeking to cut payment friction, manage currency exposure and connect more efficiently with Chinese suppliers and buyers.
