Ecobank moves to enable direct yuan payments for Africa–China trade by 2026

Ecobank is advancing plans to enable direct yuan settlements for African trade with China, in a move that could significantly reduce dependence on the U.S. dollar and lower transaction costs for businesses across the continent.

The pan-African lender confirmed it is in advanced discussions with Bank of China to establish a settlement framework that would allow payments to be made directly in Chinese yuan by the end of 2026. The initiative is expected to simplify trade flows for importers who currently navigate a costly two-step currency conversion process.

For many traders in commercial hubs such as Lagos, Nairobi and Lomé, sourcing goods from China often involves converting local currencies into dollars before converting again into yuan. This structure increases fees, exposes businesses to exchange rate volatility, and reduces profit margins.

“We are looking at opportunities for us to settle with, instead of going through the dollar, we do it directly with the Chinese yuan,” said Jeremy Awori in remarks reported by Reuters.

The move aligns with broader trade realities. China remains Africa’s largest trading partner, with exports to the continent rising 26% to $225 billion in 2025 and total trade reaching a record $348 billion. Alongside trade, Beijing has expanded its financial footprint, signing approximately $39 billion in new contracts last year, reinforcing its position as a leading bilateral investor.

Ecobank’s initiative also reflects a wider shift among African financial institutions and governments to reduce reliance on the dollar amid rising costs and liquidity constraints. In November, Standard Bank joined China’s Cross-Border Interbank Payment System (CIPS), a yuan-based alternative for international settlements.

At the continental level, the African Union-backed Pan-African Payment and Settlement System (PAPSS) is already facilitating local currency transactions for intra-African trade, helping to cut conversion costs and improve liquidity. Some countries are taking further steps. Tanzania and Zambia have introduced measures restricting dollar use in domestic transactions, while the Democratic Republic of Congo is expected to follow.

The momentum is also supported by the expanding influence of the BRICS+ bloc, which now includes Egypt and Ethiopia, and is actively promoting alternatives to dollar-dominated systems.

However, China is not alone in this evolving landscape. The United Arab Emirates is intensifying its engagement across Africa through strategic investments in ports, logistics, and energy infrastructure, alongside financial agreements. Abu Dhabi has signed multiple currency swap deals with countries including Nigeria, Kenya, Egypt and Ethiopia, enabling transactions in dirhams and local currencies.

As competition for financial influence deepens, Ecobank’s yuan settlement plan signals a growing shift towards a more diversified and multipolar payments ecosystem for African trade.