KAMPALA, Aug. 7 (Xinhua) -- Stanbic Bank Uganda has launched China's Cross-Border Interbank Payment System (CIPS) to enhance cross-border transactions, reduce foreign exchange risks and strengthen bilateral trade.
Stanbic Bank Uganda, a subsidiary of Standard Bank Group, said the integration will enable Ugandan businesses to settle transactions directly in the Chinese currency renminbi, eliminating the need for intermediary currencies while improving the speed and efficiency of international payments.
David Bahati, Uganda's minister of state for trade, industry and cooperatives, said CIPS is not merely a payment innovation but a strategic economic infrastructure, according to remarks released by his office on Friday.
"By enabling direct renminbi settlement, reducing transaction costs and improving efficiency, CIPS strengthens Uganda's competitiveness within one of our largest trading relationships," Bahati told business executives at the official launch during the inaugural Stanbic-China Trade Forum held in Kampala on Tuesday.
"Let us use these improved financial channels to import advanced machinery, technology and digital systems; to finance production lines and service platforms; and to build factories, data-driven enterprises and innovation-led industries," the minister added.
Andrew Mashanda, Standard Bank Group's head of business and commercial banking for Africa regions and offshore, said at the launch that the integration aligns with the group's broader strategy to support Africa's economic growth through trade and investment.
"Africa-China trade has been a key driver of growth across the continent. The next chapter will be defined not just by trade volumes, but by what we build together -- manufacturing capacity, value addition and infrastructure," Mashanda said. ■
