Stanbic Bank Uganda has become the first financial institution in the country to connect to China’s Cross-Border Interbank Payment System (CIPS), a move expected to make payments between Uganda and China faster, cheaper, and more secure while reducing foreign exchange risks for businesses.
The new payment platform enables Ugandan importers and exporters to settle transactions directly in Chinese Yuan (Renminbi), eliminating the need to route payments through intermediary currencies such as the US dollar.
The system was unveiled on Tuesday during the inaugural Stanbic–China Trade Forum in Kampala, where government officials and business leaders described it as a significant milestone in strengthening commercial ties between Uganda and China.
According to trade data, Uganda imported goods worth approximately USD 3.3 billion from China in 2025, while exports to China stood at USD 118 million, highlighting the importance of improving payment systems to support growing trade.
Minister of State for Industry David Bahati said the integration addresses longstanding challenges that have affected trade between the two countries.
“China is one of Uganda’s most significant bilateral trading partners. This solution removes key payment bottlenecks and opens practical pathways for deeper industrial and commercial collaboration,” Bahati said.
China launched CIPS in 2015 through the People’s Bank of China as the country’s official clearing and settlement system for cross-border Renminbi transactions. The platform is designed to improve the efficiency of international payments conducted in Chinese currency.
Andrew Mashanda, Standard Bank Group’s Head of Business and Commercial Banking for Africa Regions and Offshore, said the initiative supports the bank’s strategy of strengthening trade across Africa.
He noted that while trade volumes between Africa and China have continued to grow, future success will depend on expanding manufacturing, value addition, and infrastructure investment across the continent.
“Africa-China trade has been a key driver of economic growth. The next chapter will be defined not just by the volume of trade, but by what we build together in manufacturing capacity, value addition, and infrastructure,” Mashanda said.
He added that Uganda’s strategic location positions it as a gateway to the East African market, making it an attractive destination for Chinese investment.
Stanbic Bank Uganda Chief Executive Mumba Kalifungwa said access to CIPS represents a major step towards modernising cross-border trade and reducing dependence on intermediary currencies.
“The system gives Ugandan businesses a competitive advantage by reducing foreign exchange volatility, accelerating transaction settlement, and strengthening commercial relationships with Chinese companies,” Kalifungwa said.
He added that the platform supports the government’s long-term ambition of expanding Uganda’s economy to USD 500 billion by 2040 by making international trade more efficient.
Beyond the payment system, Stanbic Bank also announced a partnership with Guomao, a platform that connects Ugandan businesses with one of Beijing’s largest trading districts. The partnership is expected to improve sourcing opportunities for importers while helping exporters access new markets in China.
The bank said the combined initiatives are intended to lower the cost of doing business, improve payment efficiency, and encourage greater investment and trade between Uganda and China.
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