Historic shift: direct RMB payments plus zero tariffs are reshaping Africa–China trade

Here is the upshot. African exporters can now settle sales to China directly in renminbi through Standard Bank’s new connection to China’s Cross‑Border Interbank Payment System. At the same time, China has extended zero‑tariff treatment to cover every tariff line for all 53 African partners that maintain diplomatic ties with Beijing. Fewer fees, faster payments, and a bigger open market add up to a meaningful step change for exporters, especially SMEs.

What exactly changed, and when did it happen?

Standard Bank secured direct participant status on CIPS in June 2025 and went live with clearing and settlement in November 2025 at an event hosted by the South African Reserve Bank as detailed by the bank. That connection allows African institutions using Standard Bank’s channels to send and receive RMB with Chinese banks directly, trimming currency hops, time zone delays, and intermediary fees.

On trade policy, China first expanded zero‑tariff treatment to all products from least developed countries with diplomatic ties from December 1, 2024. In 2025, Beijing extended that approach to cover every tariff line for all 53 African partners that recognize it, drawing in middle‑income economies like Egypt, Nigeria, and South Africa per government statements and CIIE explanations.

“Whether resource‑rich, agriculture‑based, or industrially underdeveloped, African countries can leverage the zero‑tariff policy to boost exports, develop their industrial and value chains, and accelerate local economic growth,” Professor Zhang Chuanhong is cited as saying by the CIIE bureau.

How do direct RMB payments through CIPS work in practice?

Think of CIPS as the rails for international RMB payments. With Standard Bank plugged in directly, an exporter in Lagos, Nairobi, Accra, or Johannesburg can invoice in RMB and get paid straight into an account serviced by Standard Bank, without routing through a US dollar or euro correspondent chain. That usually means:

• Lower total fees since fewer banks touch the payment.
• Faster settlement because there are fewer conversion steps.
• Cleaner reconciliation since the whole flow stays in RMB.

Tip: If your costs are in local currency, talk to your bank about simple RMB hedging so you can lock in exchange rates for future receivables.

Why does the timing matter for African exporters?

The combination is what changes the game. China has been Africa’s largest trading partner for sixteen straight years, with total trade reaching about 295.6 billion US dollars in 2024 on official figures. Standard Bank’s Trade Barometer found that 34 percent of surveyed African businesses were already sourcing from China in 2024, up from 23 percent the year before per the bank.

Now, with duty‑free access across all tariff lines and direct RMB settlement, exporters gain a two‑sided advantage. The price sticker improves at the border, and the cash hits faster after delivery. That is especially helpful for SMEs that run on tighter cash cycles.

Which sectors could see the first lift?

• Agriculture and food: fruit, nuts, coffee, tea, cocoa, seafood, and value‑added products where freshness and traceability matter.
• Light manufacturing: apparel, leather goods, processed foods, consumer crafts, and packaging materials.
• Industrial inputs: certain chemicals, building materials, and intermediate goods used by Chinese factories.
• Minerals and metals: where tariff cuts may intersect with long‑term contracts and sustainability requirements.

Even with zero tariffs, technical standards, sanitary and phytosanitary rules, and labeling still apply. Build those into your timelines and budgets.

What about non‑price barriers and paperwork?

Tariffs are one piece. Exporters still face customs, logistics, inspections, and certification. China has been widening “green channels” for African agricultural products and inviting African brands to platforms such as the China International Import Expo, which is becoming an important route to line up distributors and test demand as official briefings show.

Standard Bank’s long‑standing partnership with ICBC can help with matching to vetted buyers, structuring trade finance, and using tools like Sinosure cover or the China‑Africa Development Fund to de‑risk complex deals. For newer exporters, that support can be the difference between a one‑off shipment and a reliable trade lane.

How can an SME start selling into China now?

What risks should exporters still watch?

• Standards and inspections. Rejections on sanitary or labeling grounds are costly. Get pre‑shipment checks where possible.
• Exchange rate swings. RMB can move. Hedge part of your exposure to protect margins.
• Logistics volatility. Freight rates and schedules still fluctuate. Bake buffers into delivery windows.
• Policy changes. Tariff preferences and product approvals can evolve. Monitor official notices and confirm at the HS code level before pricing.

Are SMEs seeing real support on the ground?

Chinese government data noted that from the FOCAC summit in September 2024 through March 2025, Chinese firms invested 13.38 billion yuan in Africa and extended 2.08 billion yuan in loans to around 350 SMEs, supporting roughly 4,500 jobs per official figures. While that is not a complete picture, it shows financing channels widening alongside market access.

Bottom line

Zero tariffs get your product through the door at a better price. Direct RMB settlement helps you get paid faster and with fewer fees. Put the two together and you have a cleaner, more competitive route into the world’s second‑largest economy. For African SMEs ready to meet standards and scale, this is a window worth walking through.

FAQs

What is CIPS and why does direct access matter?

CIPS is China’s payment system for cross‑border RMB transactions. Direct access via Standard Bank removes correspondent hops, which can cut fees and time to settle. It also simplifies reconciliation since the payment stays in RMB end to end according to the bank.

Do African exporters need a Chinese bank account to receive RMB?

No. With Standard Bank connected to CIPS, exporters can receive RMB into accounts serviced by Standard Bank and convert to local currency as needed. Discuss account setup and controls with your relationship manager.

Does zero tariff mean zero paperwork?

No. You still need valid certificates of origin, product standards compliance, and correct labeling. Tariffs may be zero, but customs, inspections, and regulatory requirements still apply.

Which African countries are covered by China’s zero‑tariff access?

As of 2025, China states the policy covers all 53 African countries with diplomatic ties to Beijing, across 100 percent of tariff lines per official communications. Exporters should confirm their specific HS codes with a broker before shipping.

How should SMEs manage RMB exchange risk?

Keep it simple. Ask your bank about forward contracts or micro‑hedges that lock in a rate for expected RMB receivables. Even partial hedging can stabilize margins.

What fees change with CIPS?

You should see fewer correspondent charges and fewer FX conversion costs when transacting directly in RMB. Your actual fees depend on your bank’s schedule and the payment method used, so request a side‑by‑side quote versus legacy flows.

This article is for information only. Trade rules and banking terms change. Confirm details with your bank, customs broker, and legal advisers before shipping or invoicing.