Bank of Kigali joins China’s CIPS international payment network

Bank of Kigali, Rwanda’s largest bank, has joined the Cross-Border Interbank Payment System (CIPS), a Chinese-controlled international payment network. This marks the first time a bank in East and Central Africa has integrated with the system.

The move is designed to facilitate direct transactions in Chinese yuan, reducing the need for multiple intermediary banks and the use of the US dollar for trade with China. By bypassing traditional global networks for yuan-denominated settlements, the bank aims to lower transaction fees and accelerate payment processing speeds.

The integration carries strategic weight due to the scale of bilateral trade: China currently accounts for over 25% of Rwanda’s imports and approximately 25.8% of its exports. While the bank will continue to use the SWIFT network for other international transactions, the adoption of CIPS provides a more efficient channel for Chinese currency exchange and reflects broader trends of de-dollarization within the African continent.