De-Dollarisation Deepens As Ecobank Targets Yuan Payment Integration

Pan-African banking group Ecobank is in advanced discussions with Bank of China to roll out a direct local-currency-to-yuan settlement platform for its customers before the end of the year, a move that underscores a growing shift away from the U.S. dollar in Africa’s cross-border transactions.

The initiative, disclosed by Ecobank Group Chief Executive Officer Jeremy Awori, is designed to facilitate more efficient trade flows between African businesses and China by eliminating the need for intermediate dollar conversions.

The development comes amid intensifying commercial ties between Africa and China, as well as mounting pressure on businesses to reduce foreign exchange costs and improve transaction speed.

Awori said the bank is investing in payment infrastructure that allows customers—particularly small and medium-sized enterprises, to settle trade directly in Chinese yuan.

He noted that many African firms are increasingly turning to China for sourcing, manufacturing, and expansion opportunities, but face margin pressures due to multiple currency conversions.

The planned platform would allow Ecobank’s clients across its network of more than 33 African countries to transact seamlessly with Chinese counterparts, aligning with broader efforts across the continent to diversify settlement currencies.

Industry analysts say such initiatives could significantly reduce transaction costs, enhance liquidity management, and shield businesses from dollar volatility.

The move also reflects a wider trend among African financial institutions and governments exploring alternatives to dollar-based payments.

In South Africa, for instance, Standard Bank has secured approval to process transactions via China’s Cross-Border Interbank Payment System, positioning the yuan as a primary settlement currency for its clients engaged in Sino-African trade.

Several African economies have also taken concrete steps toward yuan adoption. Kenya has converted portions of its Chinese debt obligations into yuan, while Zambia has introduced the use of the Chinese currency in royalty payments within parts of its mining sector.

These developments coincide with Beijing’s broader push to internationalise the yuan and strengthen its role in global trade and finance.

China’s expanding economic footprint in Africa, particularly in energy, mining, oil, and gas, has further reinforced the rationale for such financial integration.

In parallel, Beijing has introduced zero-tariff trade measures for dozens of African countries with diplomatic ties, creating additional incentives for local businesses to transact directly in yuan.

For Ecobank, the strategy extends beyond payments. The lender is also scaling up its presence in China to capture emerging opportunities linked to trade finance, investment flows, and corporate banking services.

While specific investment figures were not disclosed, the expansion signals a long-term commitment to deepening Africa-China financial connectivity.

The bank’s latest initiative comes on the back of improved financial performance. Ecobank recently announced it would resume dividend payments for the first time since 2022, supported by strong revenue and profit growth in 2025.

Its corporate and investment banking division recorded a 40 per cent increase in pre-tax profit, driven by high-value mandates including sovereign debt restructuring deals in Gabon and Benin, as well as a major financing arrangement exceeding €200m for Uganda in partnership with the Development Bank of Southern Africa.