The connection of Standard Bank to China’s Cross-border Interbank Payment System (Cips) has been described as key to the country’s financial sovereignty and an opportunity to increase direct trade with China. China has connected Standard Bank Group and Afreximbank to a network of banks directly linked to Cips payment system which removes the need to use the US dollar, reduces price swings and speeds up payment times from days to almost instant. The integration, secured after obtaining a licence in June 2025, builds on Standard Bank’s long-standing partnership with the Industrial and Commercial Bank of China (ICBC), which holds a 20 percent stake in the bank since 2007.
In an interview on Friday, Standard Bank Malawi plc chief executive Phillip Madinga confirmed that the Malawi Stock Exchange-listed bank, which is a subsidiary of the Standard Bank Group, will be part of the system, describing the move as a breakthrough in many ways. He said: “This makes predictable cash movement and flow for currently sanctioned businesses and people by Western governments.” According to Madinga, the milestone is also beneficial to government and it ensures financial sovereignty, reduces exposure to the dollar’s volatility and liquidity shortages and accelerates and supports trade goals. In a separate interview, Financial Market Dealers Association president Leslie Fatchi said the development is positive, but it’s effectiveness depends on improved and balanced trade between China and Malawi.
Fatchi said: “A payment alternative to a dollar is critical. But effective implementation could digest that China be importing from Malawi while Malawi imports from China to ensure trade balance.” Manufacturers Association of Malawi chairperson Gloria Zimba, while describing the move as a relief, said the industry will wait to see the conditions and structures that this opportunity would bring. Experts believe that making settlements of trades with Chinese partners in RMB could save African businesses up to 30 percent on transaction costs, especially for small and medium enterprises trading with China. China is the world’s second biggest economy with strong industries and advanced technology industry that supplies most of the high tech devices and construction materials to global markets, including Africa.
