Stanbic Bank Uganda has become the first bank in Uganda to connect to China’s Cross-Border Interbank Payment System (CIPS), a move expected to make trade between Uganda and China faster, cheaper and more efficient.
The new platform allows Ugandan businesses to make direct payments in Chinese Yuan (RMB), reducing the need to convert money through intermediary currencies.
This is expected to lower foreign exchange risks, reduce transaction costs and speed up settlement for businesses trading with China.
The service was launched during the inaugural Stanbic-China Trade Forum in Kampala on Tuesday.
Speaking at the launch, the minister of state for Industry, David Bahati, said the new payment system addresses some of the long-standing challenges that businesses have faced when trading with 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.
According to figures shared at the event, Uganda imported goods worth about $3.3 billion from China in 2025, while exports to China stood at about $118 million.
The new payment system is expected to help Ugandan exporters access Chinese buyers more efficiently while lowering the cost of doing business for importers.
CIPS was launched by the People’s Bank of China in 2015 as the country’s official clearing and settlement system for cross-border transactions conducted in Chinese Yuan.
Andrew Mashanda, Standard Bank Group’s Head of Business and Commercial Banking for Africa Regions and Offshore, said trade between Africa and China continues to play an important role in the continent’s economic growth.
“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, including manufacturing capacity, value addition and infrastructure,” Mashanda said.
He said Uganda is increasingly positioning itself as a gateway to the East African market and that greater investment from Chinese businesses could help expand trade and economic opportunities across the region.
“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 described the introduction of CIPS in Uganda as a major step towards modernising international trade and reducing reliance on intermediary currencies.
“The system will give Ugandan businesses a competitive edge and significantly contribute to the government’s efforts to grow the economy to $500 billion by 2040,” Kalifungwa said.
He said direct settlement in Chinese Yuan would reduce foreign exchange volatility, speed up cross-border payments and strengthen commercial relationships between Ugandan and Chinese businesses.
Kalifungwa also announced that Stanbic Bank has partnered with Guomao, a business platform that links traders with one of Beijing’s major wholesale trading districts.
He said the partnership is expected to help Ugandan importers identify suppliers more easily, improve sourcing opportunities and expand access to the Chinese market.
