Ecobank, Bank of China eye yuan settlement platform to cut dollar dependence

Ecobank Transnational Incorporated is in advanced talks with Bank of China to launch a direct local-currency-to-yuan settlement platform by year-end, as trade ties between Africa and China deepen.

The proposed platform would allow businesses to settle transactions directly in Chinese yuan, bypassing the US dollar and reducing conversion costs that have long weighed on African firms engaged in cross-border trade.

The move also signals a gradual but strategic shift in Africa’s financial architecture—one that could lower transaction costs, deepen trade integration with China, and incrementally reduce the continent’s dependence on the dollar for cross-border payments.

Data from General Administration of Customs of China show Chinese exports to Africa rose by 25.8 percent to $225 billion, significantly outpacing the 5.4 percent increase in African exports to China, which climbed to $123 billion. The widening trade gap underscores the growing scale—and imbalance—of Africa–China commerce.

Against this backdrop, demand is rising for more efficient and cost-effective payment mechanisms that can support higher trade volumes without the friction of dollar intermediation.

A push beyond the dollar

The planned platform reflects a broader shift across Africa, where financial institutions and policymakers are increasingly exploring alternatives to dollar-based payments.

If implemented, the Ecobank–Bank of China initiative could mark a significant step in reshaping cross-border payments, helping to reduce reliance on the dollar while improving transaction speed and cost efficiency.

Already, Standard Bank has been authorised to process transactions via China’s Cross-Border Interbank Payment System (CIPS), enabling yuan-denominated settlements for its clients.

Several African countries are also adopting similar strategies, including the use of yuan in infrastructure financing and commodity transactions, alongside the development of regional payment systems to support intra-African trade.

According to Jeremy Awori, Ecobank’s chief executive, the growing scale of Chinese investment across sectors such as energy, mining, and oil and gas is driving demand for more efficient settlement solutions.

China’s push to internationalise the yuan—combined with expanding trade incentives for African partners—is accelerating this transition.

To capitalise on these trends, the pan African banking group is also expanding its presence in China, positioning itself as a key financial bridge between African markets and one of their largest trading partners.