Yuan Gains Traction in Africa’s Dollar-Dominated Trade System as China-Africa Commerce Nears $400 Billion

Bilateral trade surged 17.7% to a record $348 billion in 2025, and African banks are increasingly adopting yuan-based settlement infrastructure to bypass costly dollar conversions.

The Chinese yuan is steadily gaining ground in Africa’s trade system as the continent’s economic ties with Beijing deepen, challenging the long-standing dominance of the U.S. dollar in select cross-border transactions.

According to China’s General Administration of Customs, bilateral trade rose 17.7% in 2025 to a record $348.05 billion, up from $295.6 billion in 2024. Chinese exports to Africa climbed 25.8% to $225.03 billion, while imports from the continent increased 5.4% to $123.02 billion, reinforcing China’s position as Africa’s largest trading partner.

With Beijing extending tariff-free access to exports from 53 African countries, trade experts believe China-Africa commerce could approach the $400 billion mark by the end of 2026, driven by stronger African exports and deeper economic integration.

A major driver of the yuan’s growing role is China’s Cross-Border Interbank Payment System (CIPS), designed to facilitate yuan settlements outside traditional Western financial networks. South Africa’s Standard Bank became the first African commercial bank to connect to the system in November, processing an estimated $500 million in transactions within its first four months.

Ecobank is also in advanced talks with the Bank of China to set up a direct yuan settlement system by the end of 2026, eliminating the need to use the dollar as an intermediary in trade with China. Pan-African lender Ecobank CEO Jeremy Awori told Reuters: “We are looking at opportunities for us to settle with, instead of going through the dollar, we do it directly with the Chinese yuan.” Absa Group, another South African financial services giant, is also exploring CIPS membership.

An analysis by Accra Street Journal noted that the shift is being driven by practical economic considerations. African importers buying from China still face 2% to 4% in extra fees when transactions route through the dollar. Settlement delays can tie up working capital for weeks. Kenya has converted some dollar-denominated Chinese railway loans into yuan, suggesting the shift is extending beyond trade settlements into debt and treasury management.

Standard Chartered Kenya chief executive Birru Sanghrajka told Reuters that yuan-denominated payments are becoming more visible in trade finance flows, even if they are not yet at a scale to challenge existing reserve currencies. He described the trend as complementary rather than disruptive to the dollar system.

The movement is also supported by the African Union-backed Pan-African Payment and Settlement System, which is already facilitating local currency transactions for intra-African trade, and the growing influence of the BRICS+ bloc, which now includes Egypt and Ethiopia. However, China is not alone in this evolving landscape. The United Arab Emirates has signed multiple currency swap deals with countries including Nigeria, Kenya, Egypt and Ethiopia, enabling transactions in dirhams and local currencies.

While the U.S. dollar remains dominant in global trade and reserve holdings, analysts say the yuan’s growing role reflects Africa’s deepening commercial integration with China and a gradual diversification of the currencies used to conduct international trade.

Source: Accra Street Journal 

Last Updated on June 19, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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