The Chinese yuan is gaining significant traction in Africa’s trade settlements, challenging the traditional dominance of the US dollar. Bilateral trade is approaching $400 billion, with Chinese exports surging 25.8% to $225 billion in 2025. This shift is supported by China’s Cross-Border Interbank Payment System (CIPS) and adoption by major African banks like Standard Bank, driven by cheaper local currency exchange rates.
The Chinese yuan is steadily gaining ground in Africa, penetrating trade and commerce once dominated by the US dollar. Trade between China and Africa is expected to approach $400 billion, with both exports and imports increasing significantly.
Latest data shows businesses and banks are using the yuan more frequently for settlements. These transactions are facilitated by China’s Cross-Border Interbank Payment System, with leading African banks like Standard Bank having joined the service.
China is deepening ties through local currency payments, the Belt and Road Initiative, and providing loans. Beijing has also reduced tariffs and granted market access to several African countries.
In 2025 alone, bilateral trade surged by 17.7%. Chinese exports to Africa climbed 25.8% to $225.03 billion, while imports from the continent increased 5.4% to $123.02 billion.
This reinforces China’s aggressive move to put the yuan at the forefront of transactions. High exchange rates are a key reason Africa is choosing to sideline the dollar, as local currency rates save banks and businesses millions.
Ives Yang, head of sales for transactional banking at Standard Bank’s corporate unit, stated trade in yuan will only keep increasing. “Current activity is largely driven by import-export transactions between China and African markets, with ongoing efforts to expand participation across the continent,” he said.
The Xi Jinping administration is extending its reach across underdeveloped and developing economies. President Xi has been persistent in pushing the yuan for global trade, with significant room for expansion despite its smaller scale compared to the dollar.
