Dar es Salaam, 27 August 2026 – Tanzanian traders importing goods from China can now pay suppliers directly from their Tanzanian Shilling accounts, eliminating the need to first convert funds into US dollars before settlement in Chinese Yuan.
The new payment route was highlighted at a Tanzania-China Business Forum hosted by Stanbic Bank Tanzania at Diamond Jubilee Hall in Dar es Salaam, bringing together Tanzanian traders, Chinese business representatives, government authorities and trade institutions to explore opportunities for strengthening trade and investment between the two markets.
Dar es Salaam businesswoman Lulu Kheri, who has been importing from China for several years, welcomed the solution, saying exchange-rate movements and informal payment arrangements have long affected traders’ costs and profit margins.
“We traders look at the rate because we look at profit. Someone can quote you one rate in the morning and by midday the rate has changed. Sometimes you take a lower informal rate and then you are left worrying whether the money will reach your supplier. Many traders have lost money that way,” Kheri said.
She said the direct Shilling-to-Yuan solution gives traders a simpler and more predictable formal route for paying Chinese suppliers.
“What matters to us is the rate, the cost and knowing the supplier will be paid. If I can put my Shillings into my Stanbic account and the Chinese supplier gets paid without an additional transfer charge, that speaks directly to the needs of traders,” Kheri said.
“When money is being reduced at every stage of a transaction, eventually it affects your profit.”
The forum showcased Stanbic Bank Tanzania’s direct Tanzanian Shilling-to-Chinese Yuan payment solution, which was launched on 12 August 2026.
The service makes Stanbic the first bank in Tanzania to enable customers to pay Chinese suppliers directly from a Shilling account and receive payments from China through the same route.
The solution is enabled through the Cross-Border Interbank Payment System (CIPS). By removing the need to convert Shillings into US dollars before converting them into Yuan, the service eliminates one currency conversion and reduces the number of parties involved in a payment.
Eligible transactions can settle within minutes, subject to normal banking requirements and operating hours.
SIMPLIFYING TRADE PAYMENTS
Fredrick Max, Head of Business and Commercial Banking at Stanbic Bank Tanzania, said the new payment route addresses a long-standing challenge for businesses trading with China.
“For businesses trading with China, the payment process has traditionally involved converting Shillings into US dollars and then into Yuan. Our direct Shilling-to-Yuan solution removes that extra step, helping customers save time, manage costs and transact more efficiently,” Max said.
Direct settlement also gives businesses greater control over their foreign exchange planning while reducing reliance on informal money-changing arrangements, cash handling and unnecessary travel to make payments.
Stanbic Bank Tanzania is currently offering no transfer charge on direct Yuan payments through 31 December 2026.
Max said the bank’s ambition goes beyond facilitating transactions.
Stanbic Bank Tanzania is part of Standard Bank Group, which has a strategic relationship with the Industrial and Commercial Bank of China (ICBC). Through this network, the bank helps Tanzanian businesses identify credible suppliers, build direct commercial relationships in China and reach Chinese buyers, including through platforms such as the China International Import Expo.
“We want to do more than move money to China. We want to help Tanzanian businesses build the right connections, find credible suppliers and reach new buyers for Tanzanian products,” Max said.
STRENGTHENING TANZANIA-CHINA TRADE
The theme continued during a panel discussion titled “Fursa Kati ya Soko la Tanzania na China”, or “Opportunities in the Tanzania-China Market,” which examined how traders, exporters and investors can use the new payment route alongside existing trade and investment support.
Alfred Ngelula, Head of the China Desk at the Tanzania Investment and Special Economic Zones Authority (TISEZA), said reducing the cost of moving capital between Yuan and Shillings could strengthen Tanzania’s proposition to Chinese investors.
“When an investor brings capital in Yuan, it has traditionally had to pass through the dollar before becoming Shillings. Take away that additional cost and you reduce the cost of investing,” Ngelula said.
“That is important for an investor because it improves competitiveness and gives us another strong reason to tell Chinese investors that Tanzania is the right place to invest.”
Meanwhile, Benson Nkini, Senior Trade Officer at the Tanzania Trade Development Authority (TanTrade), said Tanzania should use its growing relationship with China to increase exports while placing greater emphasis on locally processed products.
“We buy from China, but we also want to sell so that we improve the balance of trade,” Nkini said.
“We do not want to see our crops exported mainly in raw form. When we export raw products, we lose income, jobs and the value from by-products. We want to see more finished products carrying the Made in Tanzania mark reaching international markets.”
BEYOND PAYMENTS
Anthony Kimambo, Head of Trade at Stanbic Bank Tanzania, said the scale of Tanzania-China trade underlines the importance of making settlement simpler and more efficient.
“For every 10,000 Shillings Tanzania spends importing goods, about 3,000 Shillings goes to China. That is not a small trading partner,” Kimambo said.
“CIPS gives our customers a more direct bank-to-bank payment route into China by removing the need for the transaction to first pass through the US dollar.”
He said Stanbic’s role also extends beyond facilitating payments.
“We connect customers directly with manufacturers in China, including the factories themselves rather than relying only on middlemen. A customer provides the specifications and agrees the commercial terms, and we help strengthen the link between the two parties,” Kimambo said.
“On the exporter side, we also support businesses so that when they send their goods, they have greater confidence around how they will be paid.”
Stanbic Bank Tanzania has taken customers to the China International Import Expo (CIIE) for four consecutive years.
The next expo is scheduled for November 2026, with registration closing in October, providing Tanzanian businesses with an opportunity to engage directly with Chinese buyers, manufacturers and commercial partners.
Businesses can access the direct Shilling-to-Yuan payment service at any Stanbic Bank Tanzania branch. Existing customers can also transact through the bank’s digital channels after completing the required documentation and regulatory processes.
The initiative is expected to further support businesses engaged in Tanzania-China trade by simplifying cross-border payments while creating opportunities for deeper commercial connections between Tanzanian and Chinese businesses.
Keep following Kitomari Banking & Finance Blog for more business, banking and finance news from Tanzania and beyond.
No comments:
Post a Comment