Rwanda’s Biggest Bank Joins China’s Yuan Settlement Network For Trade

KIGALI, Rwanda – Bank of Kigali has become the first bank headquartered in Rwanda, and the first headquartered in East and Central Africa, to join China’s Cross-Border Interbank Payment System as a direct participant, giving the lender a direct route for clearing and settling renminbi payments linked to trade with China.

The bank signed the direct participation agreement in Xiamen, China, on September 8 during the second CIPS Cross-Border Bank-Enterprise Cooperation Event. Direct-participant status places Bank of Kigali inside China’s main infrastructure for cross-border transactions in renminbi, or RMB, rather than forcing every qualifying payment through several intermediary banks.

For Rwandan importers, the change creates a shorter route for settling invoices with Chinese suppliers. Exporters receiving RMB gain a direct banking channel through Kigali. The practical savings will depend on BK’s pricing, foreign-exchange spreads, liquidity and customer products, but fewer intermediaries normally mean fewer correspondent-bank steps and less processing friction.

China launched CIPS in 2015 under oversight from the People’s Bank of China. The platform clears and settles cross-border RMB transactions covering trade, investment, financing and remittances. CIPS differs from SWIFT. SWIFT mainly carries secure payment messages between financial institutions, while CIPS provides clearing and settlement for RMB transactions. Banks often use both systems within the same payment chain.

Bank of Kigali Chief Executive Officer Diane Karusisi had signalled the direction before the September signing. Speaking during a BK Business Club gathering for the Chinese business community in Kigali on August 21, Karusisi described growing demand from Chinese-linked companies operating in Rwanda.

“Many of them have companies they have established in construction, they have hotels, and they need various services,” Karusisi said. BK customers with commercial links to China also seek support for sourcing goods and transferring money between both markets, according to her comments at the gathering.

Her comments point to the commercial logic behind the CIPS connection. Rwanda buys substantial volumes of machinery, manufactured goods, electronics and other products from China. Many transactions traditionally pass through dollar-based correspondent banking channels before suppliers receive payment. A direct RMB route gives businesses another settlement option.

Chinese Ambassador to Rwanda Gao Wenqi also backed deeper banking links during the August gathering. “I am impressed by the innovation-driven and diversified portfolio of Bank of Kigali, which has been a trustworthy partner to the Chinese Embassy over the years,” Gao said. He also praised stronger ties between BK and Rwanda’s Chinese business community.

Gao separately highlighted CIPS as a mechanism for reducing transaction costs and facilitating cross-border settlements. The Chinese Embassy said he linked the payment infrastructure with growing Rwandan exports to China and wider cooperation in digital infrastructure, artificial intelligence and vocational training.

Trade figures explain why the new payment route matters. Rwanda’s National Institute of Statistics recorded $1.61 billion in total imports during the second quarter of 2026 and named China as the leading country of origin. China also ranked first among Rwanda’s export destinations during the quarter. In the first quarter, Rwanda imported goods worth $355.53 million from China, equal to more than one quarter of total imports.

Rwanda’s exports to China also grew during 2026. Official data show China received $65.21 million of Rwandan domestic exports in July, making China Rwanda’s second-largest export destination for the period behind the United Arab Emirates.

The trade relationship includes coffee, tea, chilli, minerals and other Rwandan products. China has also expanded market access for African goods through tariff measures covering eligible exports from developing countries. Greater trade volumes create greater demand for settlement systems which reduce delays, conversion costs and reliance on multiple correspondent institutions.

Bank of Kigali already built several links around the Chinese market before joining CIPS. The lender introduced Alipay transfers in 2022 and recorded nearly $2 million in transfers from Rwanda to China through the service during 2023. BK also works with Bank of Communications, China Construction Bank and Bank of China. The lender plans to expand its Chinese partner-bank network to six institutions by the end of 2026.

Karusisi has also discussed RMB-denominated accounts for customers who want to hold Chinese currency rather than converting every transaction into Rwandan francs or United States dollars. Such accounts, combined with direct CIPS access, would give importers and exporters more choice over currency management.

Li Yanduo, who represented Rwanda’s Chinese business community at the August BK event, said local Chinese traders and investors had worked closely with Rwandan counterparts.

“We have done everything possible to support Chinese traders and investors in establishing their businesses in Rwanda, building strong relationships and developing their activities over the long term,” Li said.

Across Africa, RMB settlement has started gaining a wider institutional base. Standard Bank secured approval to process transactions through CIPS in 2025. By July 2026, Standard Bank had processed more than CNY8 billion, around $1.2 billion, through the system and had extended access across South Africa, Angola, Ghana, Kenya, Lesotho and Tanzania.

Ontiretse Modise, Standard Bank’s head of payments for corporate and investment banking, linked those volumes to trade demand.

“Surpassing CNY 8 billion in transaction flows within the first year reflects strong demand for seamless trade with the world’s second-largest economy,” Modise said.

Bank of Kigali’s entry differs because BK becomes the first East and Central African headquartered lender with direct-participant status. Standard Bank already provides CIPS-linked services in several countries through its wider African network.

The move also deserves careful interpretation. Joining CIPS does not mean Rwanda has abandoned the dollar, nor does the agreement replace SWIFT. Rwanda’s banks still operate across several currencies and payment channels. Businesses will choose settlement currencies according to contracts, pricing, exchange risk, supplier preferences and available liquidity.

The significance lies in choice and infrastructure. A Rwandan bank now holds direct access to a Chinese settlement network at a time when China ranks among Rwanda’s largest trading partners. Businesses trading directly with Chinese suppliers now gain another route for moving money without routing every RMB transaction through outside participant banks.

For Africa, the development adds another example of banks building payment links around the continent’s changing trade patterns. Standard Bank’s CIPS volumes already show commercial demand for RMB settlement on African trade corridors. Bank of Kigali now brings Rwanda directly into the same financial infrastructure.

Bank of Kigali enters the new system during its 60th anniversary year. BK Group reported net income of Rwf56.4 billion for the first half of 2026. Group assets reached Rwf2.984 trillion, while client balances and deposits stood at Rwf2.105 trillion by June.

For Rwanda’s traders, the September agreement carries a simpler question. If direct RMB settlement lowers costs and speeds payments, businesses dealing with China gain a practical alternative. If usage stays low, the agreement will remain mainly an institutional connection. Transaction volumes, customer fees, settlement times and uptake among exporters and importers will provide the clearest measure of whether Rwanda’s direct connection to China’s yuan payment infrastructure changes everyday trade.