Signed in Beijing in the presence of Togo's President Faure Essozimna Gnassingbe, Ecobank Group's new agreement with China's Cross-Border Interbank Payment System (CIPS) is about more than a banking handshake. The pan-African lender, which operates across 34 African countries and posted a profit before tax of US$801 million in 2025 (a 21% year-on-year increase), has been building its China presence since opening a Beijing Advisory Office in 2012. This latest MOU deepens that work and connects directly to the 2024 Forum on China-Africa Cooperation (FOCAC) Beijing Action Plan, which explicitly calls for wider use of both CIPS and the Pan-African Payment and Settlement System (PAPSS) across the continent.
So what is CIPS, and why does it matter? Launched in 2015 by the People's Bank of China, CIPS is the infrastructure that allows financial institutions worldwide to settle transactions in Chinese renminbi (RMB) directly through China's banking system. As of May 2025, it has processed over US$94 trillion and connects more than 5,000 institutions across 190 countries. Africa currently has 9 direct participants and 112 indirect participants on the network. Standard Bank, which joined CIPS in November 2025, reported processing more than CNY8 billion (roughly US$1.2 billion) through the system by July 2026, a signal of what is commercially possible for African banks with the right infrastructure in place.
The practical case for African businesses is straightforward. China is Africa's largest trading partner, a leading export destination for 19 African countries and a leading import source for at least 20. Togo alone recorded US$5.43 billion in bilateral trade with China in 2025, up 55% from the year before. When an importer buys machinery from China, settling in RMB rather than converting local currency into US dollars first can cut unnecessary costs. For economies that remain heavily exposed to dollar movements, a wider currency mix is a form of financial cushioning.
CIPS and PAPSS are built for different but complementary purposes. PAPSS focuses on intra-African trade, helping businesses settle in local currencies across borders within the continent. CIPS opens the corridor to China. Ecobank, already engaged with PAPSS, is one of the few institutions positioned to work within both systems simultaneously. More African-owned banks building their own RMB payment capabilities could shift the architecture of how trade finance and cross-border investment actually flow.
The bigger question sitting underneath all of this is whether African financial institutions will have the tools to shape the terms of Africa's growing economic relationships, not just participate in them. Payment connectivity is the foundation. What gets built on top of it is still being decided.
Originally published by African Business.