Stanbic Uganda launches payments system to ease trade with China

What the report says

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 the bank says will let Ugandan businesses send payments in Chinese yuan directly, with less delay and lower foreign-exchange risk. The development was reported in Kampala and presented as a way to simplify settlement for trade between Uganda and China.

According to the Watchdog Uganda report, the new service is aimed at helping importers and exporters manage transactions more efficiently, especially in a trade relationship where Uganda buys far more from China than it sells there. The article cites figures showing Uganda imported goods worth billions of dollars from China, while exports were much smaller, underscoring the payment frictions that businesses face.

The launch took place during the inaugural Stanbic–China Trade Forum in Kampala, where Minister of State for Industry David Bahati said the platform could address long-standing payment and data challenges in Uganda–China commerce. Stanbic Bank Uganda chief executive Mumba Kalifungwa said direct RMB settlement would reduce reliance on intermediary currencies and improve transaction speed. Standard Bank Group’s regional business and commercial banking head, Andrew Mashanda, linked the move to broader Africa–China trade ties and future industrial cooperation.

CIPS, launched globally by the People’s Bank of China in 2015, is the official clearing system for cross-border RMB transactions. In general, such systems can make international trade payments more predictable, though the practical impact in Uganda will depend on uptake by businesses and trading partners.