Uganda finds a smoother route to China’s yuan

Kampala, August 10, 2026 - Minister of State for Industry, David Bahati posing for a photo with the Stanbic Uganda team led by the Bank’s Chief Executive Mumba Kalifungwa during the launch in Kampala. Stanbic’s China payment link is set to ease the country’s trade friction with Beijing Ugandan businesses trading with China are set to gain faster access to yuan payments after Stanbic Bank Uganda became the country’s first lender to connect to China’s Cross-Border Interbank Payment System, or CIPS.

The move could remove one of the less visible costs of Uganda’s growing dependence on Chinese goods: the complexity and currency risk involved in paying suppliers. Ugandan importers have traditionally routed China-bound payments through correspondent banks, often converting shillings into US dollars before settling invoices in Chinese yuan.

The additional transaction can increase costs, delay settlement and expose companies to movements in the dollar-shilling exchange rate. Direct yuan settlement through CIPS allows participating banks to bypass some of those intermediaries and settle transactions through China’s official cross-border payment infrastructure.

That matters in a trade relationship heavily tilted towards China. Uganda imported about $3.3bn of goods from China in 2025, compared with exports of only $118mn, according to figures cited at the launch. The imbalance has made China one of Uganda’s most important commercial partners, while also highlighting the country’s reliance on Chinese manufactured goods, machinery and other imports.