The African Export-Import Bank (Afreximbank) is set to pioneer Africa’s use of the Chinese renminbi (RMB) in project financing after becoming a direct participant in China’s Cross-Border Interbank Payment System (CIPS). This landmark development underscores Afreximbank’s strategic shift from traditional dollar-based financing to RMB transactions, aiming to deepen financial integration between Africa and its largest trading partner, China.
Announced at a high-level seminar on China-Africa cooperation in Addis Ababa, the initiative supports Africa’s industrial development ambitions and promotes green, integrated, and sustainable growth aligned with Agenda 2063 and the African Continental Free Trade Area (AfCFTA).
With direct access to CIPS since June 2025, Afreximbank gains the ability to finance projects across Africa using RMB, streamlining transaction processes and cutting costs and currency exchange risks associated with cross-border trade and project finance.
Afreximbank’s successful issuance of Panda bonds on China’s capital market has diversified its funding and set important benchmarks for African financial institutions. Dr. Kwabena Ayirebi, Director for Banking Operations at Afreximbank, highlighted the forthcoming RMB-financed projects, calling them a crucial step in diversifying financial resources and fortifying trade and investment ties.
China, Africa’s largest trading partner for 16 consecutive years, recorded a trade turnover of US$295.6 billion in 2024. The transition to RMB financing is expected to accelerate this economic partnership by easing trade and investment flows.
The seminar also highlighted the evolution of China-Africa relations from aid-based cooperation to a strategic partnership focused on sustainable industrialization. Since the Forum on China-Africa Cooperation (FOCAC) launch in 2000, China’s total foreign direct investment and credit to Africa exceeded US$50 billion during 2022-24.
To institutionalize this partnership, Afreximbank proposed establishing the China-Africa Development Planning Institute. This institute would bring together African and Chinese planners to design regional industrial strategies, develop forecasting tools, and adapt China’s five-year planning philosophy to Africa’s unique context.
Jiang Feng, Head of China’s Mission to the African Union and Representative to UNECA, reaffirmed China’s role as a loyal partner in Africa’s industrial journey, underscoring industrialization as Africa’s legitimate right free from externally imposed constraints.
Experts at the seminar, including Yuan Shenglong of China’s National Development and Reform Commission, called for enhanced cooperation to safeguard developing nations’ interests and advance a more equitable international system. China’s multifaceted support—including finance, technology, manpower, infrastructure, industrial parks, agriculture, and energy—is fueling Africa’s socio-economic progress.
This evolving partnership in local currency project finance and joint planning aims to measure success beyond GDP, focusing on dignity, resilience, and opportunity for African peoples. With Afreximbank at the forefront, Africa is shifting from participating in global trade to shaping its financial architecture.
