Thanks to the new platform, Ugandan companies will be able to make direct payments in yuan (RMB), bypassing the need for conversion through intermediate currencies. This should speed up transactions and make them more convenient for participants in foreign economic activity.
The launch of the system coincided with an increase in trade turnover between the two countries. In 2025, Uganda imported $3.3 billion worth of products from China, while Ugandan exports to China totaled $118 million. The bank believes that the new infrastructure will reduce costs for importers and simplify the entry of local exporters into the Chinese market.
The presentation of the platform took place within the framework of the first Stanbic-China trade forum. Minister of State for Industry David Bahati called the launch a timely response to the long-standing difficulties with calculations and trade data that hindered the development of bilateral business. «China is one of Uganda's most important bilateral partners. This decision removes key obstacles and opens up practical ways for deeper industrial and commercial cooperation», Bahati said.
The CIPS system, created by the People's Bank of China in 2015, is the official platform for clearing and settling international transactions in yuan.
Andrew Mashanda, SBU's Head of Corporate and Commercial Client Relations in Africa and Offshore jurisdictions, said the integration fits into the group's broader strategy focused on supporting the growth of the African economy through trade and investment. «Trade between Africa and China is one of the key drivers of development on the continent. The next stage will be determined not only by the volume of exchange, but also by what we are creating together: production, added value and infrastructure», Mashanda said.
According to him, Uganda's advantageous geographical position as a gateway to East Africa opens up serious prospects for attracting Chinese capital and expanding business cooperation.
Mumba Kalifungwa, Executive Director of Stanbic Bank Uganda, called the launch of CIPS an important step in modernizing trade finance and reducing dependence on intermediary currencies in cross-border payments. «This system will give Ugandan businesses a competitive advantage and contribute to the government's efforts to grow the economy tenfold to $500 billion by 2040», Kalifungwa said.
Direct payments in yuan via CIPS will help reduce the impact of currency volatility, speed up payment processing, and strengthen business ties between Ugandan and Chinese companies.
In addition to the payment platform, SBU also announced a partnership with Guomao, a system that connects Ugandan importers with one of Beijing's largest shopping malls. This should expand the possibilities of finding suppliers and improve the access of local traders to the market.
The bank expects that together these initiatives will make trade flows more stable, reduce transaction costs, and strengthen Uganda's participation in one of its most important foreign trade partnerships.
Comments (0)