Stanbic Bank Kenya is set to join China’s interbank payment system (CIPS) by the end of 2025. The bank will join the payment platform through its parent company, the Standard Bank in a move that will see the bank add CIPS as its second payment platform.
“At the moment, we are using SWIFT, but the Standard Bank is currently in the process of joining CIPS which is the equivalent but for Chinese Yuan-based transactions,” Muya Guo who is the Stanbic Bank Kenya Senior Vice President and Head of the China Desk told a local media house in an interview.
The CIPS is a wholesale payment system that is authorized by the People’s Bank of China. It specializes in the Chinese Yuan cross-border payment clearing.
“CIPS takes efforts to provide reliable, efficient, convenient and low-cost clearing and settlement services. As one of important financial market infrastructures in China, CIPS has played a positive role in contributing to the development of Shanghai international financial center, promoting two-way opening-up of the financial sector, strengthening financial support to China’s real sector economy, serving the Belt and Road Initiative (BRI) financing and facilitating the global use of the Yuan,” the CIPS official website states.
According to the bank, the new system will aid the lender in tapping opportunities from the growing trade and investment ties between China and Africa.
“Since 2008, the Standard Bank and the Industrial and Commercial Bank of China have been strategic partners to grow business. From that standpoint of 17 years in partnership, we understand Chinese corporates and what they require to conduct operations in this market,” said Guo. The Industrial and Commercial Bank of China holds a 20 percent stake in Standard Bank which it acquired for USD5.5 billion in 2008.
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“The African Continental Free Trade Area presents a very good opportunity for Chinese manufacturers who are looking to invest and set up factories in Africa as they target the intra-continental market. A lot if Chinese companies are coming here targeting the fast-growing middle-class market.”
