Absa Group Ltd. is evaluating a link to China’s Cross‑Border Interbank Payment System (CIPS) to streamline yuan‑denominated settlements as China cements its role as Africa’s top trading partner. CEO Abdi Mohamed said the move would complement existing global payment rails and give African firms a cheaper, direct route for China trade. The initiative follows a surge in China‑Africa trade that topped $120 billion last year.

Standard Bank Group was the first African lender to connect to CIPS, processing 9.5 billion rand (about $572 million) in the last six months. The current practice forces traders to convert local currency to dollars before swapping to yuan, inflating costs and exposing firms to dollar shortages and FX volatility. Ecobank is also applying to join the network. This reduces settlement time as well.

In Kenya, Absa aims to double pre‑tax earnings within five years, but flags the Iran‑Ukraine war as a supply‑chain and inflation risk that could curb growth. Anticipating higher demand for import‑financing, the bank plans to raise credit limits and pursue acquisitions to expand market share. Such moves also bolster its regional brand. The CIPS link would therefore tighten Absa’s position in China‑Africa trade.