Africa’s shift toward China’s yuan gathers pace as Angola’s banking sector embraces Beijing’s payment network

Banco de Fomento Angola (BFA), the country’s second-largest commercial lender, plans to become the first Angolan bank to connect directly to CIPS by next year, responding to growing demand from businesses trading with China.

The decision marks another step in Africa’s gradual shift towards settling more cross-border transactions in China’s currency rather than the U.S. dollar.

The development comes as China cements its position as Africa’s largest bilateral trading partner.

Trade between China and Africa has continued to expand, supported by Beijing’s decision to remove tariffs on imports from 53 African countries and growing Chinese investment in sectors ranging from infrastructure and mining to manufacturing and agriculture.

As trade volumes rise, more African businesses are asking banks to settle payments directly in yuan instead of first converting them into U.S. dollars.

Few African countries illustrate China’s economic influence better than Angola.

The oil-rich Southern African nation is one of China’s largest crude oil suppliers, while Chinese lenders have provided billions of dollars in financing for roads, railways, housing and energy projects over the past two decades.

Those close economic ties are now extending beyond trade into the country’s financial system.

Earlier this month, Angola’s central bank elevated the yuan by allowing commercial banks to use it to meet mandatory foreign currency reserve requirements, placing it alongside the U.S. dollar, the euro and the South African rand.

Days later, Angola’s finance ministry disclosed plans to explore yuan-denominated borrowing to access cheaper financing.

BFA’s planned entry into CIPS now completes another piece of that broader strategy.

Angola is far from alone. South Africa’s Standard Bank became the first African lender to connect directly to CIPS in late 2025.

Last month, China’s central bank authorised Standard Bank and the Industrial and Commercial Bank of China (ICBC) to jointly provide renminbi clearing services across 19 African countries, making it easier for businesses to settle trade directly in yuan.

Elsewhere, several African countries have expanded currency swap arrangements, encouraged yuan financing and increased the use of China’s currency in bilateral trade as economic links with Beijing deepen.

The trend has accelerated alongside China’s growing role as the continent’s biggest trading partner and infrastructure financier.

More than an alternative to SWIFT

Launched in 2015, CIPS is China’s cross-border payment infrastructure for settling international transactions in yuan.

Although it remains significantly smaller than the Belgium-based SWIFT messaging network that underpins most global financial transactions, CIPS has expanded steadily as Beijing seeks to internationalise its currency and reduce dependence on dollar-based payment systems.

For African banks, joining CIPS can lower transaction costs, shorten settlement times and reduce the need to convert local currencies into dollars before paying Chinese suppliers.

The dollar still dominates for now

Despite the growing role of the yuan, the U.S. dollar remains the world’s dominant reserve and trade currency, accounting for the majority of international reserves and cross-border transactions.

Even so, analysts say the growing adoption of yuan settlement across Africa is less about replacing the dollar than reflecting the continent’s changing trade patterns.

As China buys more African commodities, finances more infrastructure and expands market access for African exports, banks are increasingly building the financial infrastructure needed to support those relationships.

BFA’s planned integration into CIPS is therefore more than a banking upgrade. It is another sign that Africa’s financial system is gradually adapting to an economic landscape in which China is becoming an increasingly central trading and investment partner.