Stanbic Bank Tanzania, one of Tanzania's leading commercial banks, on Wednesday launched a direct renminbi (RMB) settlement service, allowing Tanzanian businesses trading with China to make and receive payments directly in the Chinese currency, a move expected to reduce transaction costs and facilitate bilateral trade.
The service runs on China's Cross-Border Interbank Payment System (CIPS), enabling banks to clear transactions in yuan rather than routing through a third currency — often the U.S. dollar.
For Chinese businessman Wang Xin, who has lived in Tanzania for six years, the development could relieve long-standing headaches for importers grappling with foreign exchange shortages.
"The biggest challenge we are facing in the financial market right now is the foreign exchange in Tanzania. Because of the intervention of the U.S. dollar, the cost of exchanging the RMB is relatively high and there is often a shortage of foreign exchange in the market. So we hope that the bank can give us more support," he said.
Stanbic Bank has also extended CIPS access to other African markets, positioning the service as a continent-wide channel for yuan-based commerce as trade with China deepens across the region.
Tanzanian officials view the growing use of the yuan as another pillar supporting economic ties with China, especially as China opens its markets wider to Tanzanian goods.
"We confidently foresee that our economic exchange will experience a significant upward trajectory, particularly now that China has fully implemented its landmark 100 percent zero tariff treatment policy for Tanzania effective the first of May 2026," said Tanzanian Ambassador to China Suleiman Haji Suleiman.
The Bank of Tanzania, the country's financial regulator, says it supports CIPS while also working to strengthen other regional and continental payment systems. But it cautions that the rapid expansion of digital cross-border payments must be matched by robust safeguards.
"As these services expand, attention must remain focused on anti-money laundering and counter terrorist financing controls, cyber-security resilience, consumer protection and prudent risk management," said Sauda Kassim Msemo, deputy governor of the Bank of Tanzania.
Tanzania introduces direct RMB settlement service to facilitate trade with China
