STANBIC BANK BECOMES FIRST BANK IN TANZANIA TO LAUNCH DIRECT RMB (YUAN) SETTLEMENT FOR CHINA TRADE

From second left, Bank of Tanzania Deputy Governor, Sauda Msemo, Stanbic Bank Tanzania Chief Executive, Manzi Rwegasira, and Deputy Minister for Industry and Trade Dennis Londo, joined by other stakeholders, during the official launch of CIPS and Direct RMB (Yuan) Settlement in Dar es Salaam. The launch makes Stanbic Bank Tanzania the first bank in Tanzania to enable businesses trading with China to pay and receive Renminbi directly, without first converting through the US dollar.

Dar es Salaam, Tanzania – 12 August 2026

Stanbic Bank Tanzania has made a major breakthrough in Tanzania’s international trade and financial services landscape after becoming the first bank in the country to launch Direct Renminbi (RMB/Yuan) Settlement, enabling businesses to pay and receive Chinese currency directly when trading with China.

The new capability allows Tanzanian businesses to settle transactions with Chinese trading partners in Renminbi without first converting funds through the United States dollar, creating a more direct, efficient and potentially cost-effective channel for one of Tanzania’s most important trading relationships.

The service is available in both directions — supporting Tanzanian importers purchasing goods and services from China and exporters receiving payments from Chinese buyers.

A MAJOR STEP FOR TANZANIA–CHINA TRADE

China has been Tanzania’s largest trading partner for ten consecutive years, with bilateral trade reaching close to USD 9 billion in the most recent full year of available data.

Traditionally, many transactions between Tanzanian businesses and their Chinese counterparts have involved the US dollar as an intermediary currency. This can introduce additional foreign exchange conversion costs, currency exposure and processing time.

Direct RMB Settlement is designed to remove that additional layer, giving Tanzanian businesses a more direct route into the Chinese market.

Speaking at the launch, Manzi Rwegasira, Chief Executive of Stanbic Bank Tanzania, said the new service would make it easier for businesses to trade in both directions.

“China is Tanzania’s largest trading partner, and it has held that position for a decade. Direct RMB (YUAN) Settlement gives Tanzanian businesses a simpler, more direct route to trade with China, and it strengthens the economic ties between our two countries.”

The launch also builds on the strength of Standard Bank Group, the parent company of Stanbic Bank Tanzania, which together with the Industrial and Commercial Bank of China (ICBC), became the first African-based banking group authorised by the People’s Bank of China to clear Renminbi transactions across Africa.

Standard Bank was granted the authorisation in 2026 and now operates as the Renminbi Clearing Bank of Africa.

REDUCING COSTS AND MANAGING CURRENCY RISK

Beyond direct settlement, Stanbic Bank Tanzania is providing businesses with a broader foreign exchange management toolkit to help them manage currency risk.

The offering includes:

• Spot foreign exchange for immediate trade payments.
• Forward contracts to lock in TZS/RMB or USD/RMB exchange rates ahead of a transaction.
• Currency options that provide protection against unfavourable movements while allowing businesses to benefit from favourable currency movements.

For large corporates and businesses handling significant international transactions, managing foreign exchange exposure can have a direct impact on margins, cash flow and financial planning.

Ester Manase, Head of Corporate & Investment Banking at Stanbic Bank Tanzania, said the service responds to a practical need among corporate treasurers.

“Direct RMB (YUAN) Settlement gives larger importers and exporters a practical way to manage that exposure and free up working capital that would otherwise sit in conversion costs. It is a tool our corporate treasurers have been asking for.”

OPPORTUNITY FOR IMPORTERS AND EXPORTERS

The new settlement mechanism is expected to benefit businesses across different sectors and sizes.

For Tanzanian importers purchasing machinery, equipment, raw materials and other products from China, direct payment in Renminbi could reduce an additional layer of currency conversion and provide greater flexibility when negotiating prices and payment terms with Chinese suppliers.

The opportunity is equally important for exporters.

Tanzania has significant potential to expand exports to China, particularly in agricultural and manufactured products. Tanzanian exporters of avocados, soybeans, sesame and other products can now combine China's tariff preferences with a direct RMB payment channel.

China has granted Tanzania and other African least developed countries zero-tariff access on 100 percent of tariff lines since December 2024, creating additional opportunities for African exporters seeking access to the Chinese market.

Fredrick Max, Head of Business & Commercial Banking at Stanbic Bank Tanzania, said direct settlement could create tangible benefits for businesses trading in both directions.

“Paying suppliers directly in Renminbi removes a layer of conversion cost, and it gives businesses more room to negotiate on price and payment terms with Chinese suppliers. The same applies in reverse, for Tanzanian businesses selling into China, direct settlement means they are paid faster and more predictably.”

BANK OF TANZANIA WELCOMES THE INNOVATION

The launch has also received support from the Bank of Tanzania, with Deputy Governor Sauda Msemo describing RMB settlement as consistent with efforts to reduce unnecessary barriers between Tanzanian businesses and important international markets.

“The RMB settlement is consistent with our objective of reducing unnecessary barriers between Tanzanian businesses and one of the world’s most important trading markets. Our focus is not on promoting any specific currency, but on ensuring that businesses have access to efficient, safe and reliable payment channels that support them wherever opportunities exist.”

Msemo added that the central bank remains committed to creating an environment where financial innovations can develop while maintaining the stability, integrity and resilience of Tanzania’s financial system.

She also emphasised the importance of extending the benefits of such services beyond large corporations to small and medium enterprises (SMEs), which play a critical role in the Tanzanian economy and international trade.

STRENGTHENING THE LINK BETWEEN FINANCE AND TRADE

The Government also welcomed the development.

Deputy Minister for Industry and Trade Dennis Londo described the launch as more than the introduction of a new banking product, saying it represents an important step towards strengthening the connection between finance and trade.

According to Londo, reducing transaction barriers can create opportunities for Tanzanian businesses to participate more effectively in international markets, particularly the Chinese market.

He further stressed the importance of linking finance, production and markets to support Tanzania’s Vision 2050, enable businesses to expand exports, create employment and compete more effectively in global markets.

AVAILABLE TO BUSINESSES OF DIFFERENT SIZES

Stanbic Bank Tanzania said Direct RMB (YUAN) Settlement is available to corporate, commercial, SME and retail clients, and will be delivered in accordance with Bank of Tanzania regulatory guidelines.

This broad availability could make the initiative particularly significant for Tanzania’s growing community of businesses engaged in international trade.

For SMEs importing products from China, direct RMB settlement could offer an additional option for managing payments. For exporters, it provides another channel through which they can receive proceeds from Chinese customers.

Ultimately, the initiative could help make the financial side of Tanzania-China trade more direct, transparent and efficient.

A NEW CHAPTER IN TANZANIA–CHINA ECONOMIC RELATIONS

Stanbic Bank Tanzania’s Direct RMB Settlement launch comes at a time when economic ties between Tanzania and China continue to deepen.

With bilateral trade approaching USD 9 billion, even relatively small improvements in transaction efficiency can have a significant impact on businesses operating across the two markets.

The ability to settle directly in Renminbi gives Tanzanian companies another tool to manage foreign exchange exposure, potentially reduce conversion costs and improve cash-flow management.

More importantly, it strengthens the financial infrastructure supporting trade between Tanzania and one of its most important economic partners.

For Tanzanian businesses looking to expand their trade with China, Direct RMB Settlement could therefore represent more than a new payment option — it could become an important competitive tool in accessing one of the world’s largest markets.

Stanbic Bank Tanzania is encouraging businesses importing from or exporting to China to contact their relationship managers or visit a branch to learn more about how Direct RMB Settlement can support their international trade activities.

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