STANBIC BANK TAKES DIRECT SHILLING-TO-YUAN PAYMENT SOLUTION TO KARIAKOO TRADERS

Minister of Industry and Trade, Hon. Judith Salvio Kapinga (right), engages with Stanbic Bank Tanzania’s Head of Internal Audit, Jonathan Ngoma (third right), as Ilala District Commissioner Edward Mpogolo (second right) looks on during her visit to the bank’s booth in Kariakoo, Dar es Salaam, on October 13, 2026. The visit was part of Stanbic’s initiative to raise awareness among traders about its direct shilling-to-yuan payment solution through CIPS, enabling businesses to pay Chinese suppliers without first converting Tanzanian shillings into US dollars.

The initiative aims to simplify China trade payments, reduce currency conversion costs and help Tanzanian businesses expand international trade.

DAR ES SALAAM, Tanzania; OCTOBER 13, 2026 – Stanbic Bank Tanzania has taken its direct shilling-to-yuan payment solution to Kariakoo, Dar es Salaam, bringing international banking services closer to traders and businesses importing goods from China.

The initiative aims to simplify cross-border payments, reduce currency conversion costs and support businesses engaged in Tanzania-China trade.

The activation was attended by the Minister of Industry and Trade, Hon. Judith Salvio Kapinga (MP), ahead of the 140th Canton Fair in Guangzhou, China, one of the world's major international trade exhibitions.

During the exercise, Stanbic teams visited shops and warehouses across Kariakoo, demonstrating how traders can pay suppliers in China directly in yuan from their Tanzanian shilling accounts without first converting their money into United States dollars.

The service operates through China's Cross-Border Interbank Payment System (CIPS). Stanbic Bank Tanzania launched the solution on August 12, 2026, becoming the first bank in Tanzania to offer direct shilling-to-yuan payments, according to the bank.

Simplifying payments for Kariakoo businesses

Stanbic Bank Tanzania Head of Internal Audit, Jonathan Ngoma, said bringing the service closer to traders would help businesses simplify international payments, manage transaction costs and concentrate on expanding their operations.

"Kariakoo is one of Tanzania's most important commercial centres, connecting thousands of traders to suppliers and markets across the world. As Stanbic, we understand that businesses need financial solutions that make international trade easier, faster and more efficient," Ngoma said.

He added that the solution would help traders make payments to Chinese suppliers more efficiently while managing the costs associated with international transactions.

China has been Tanzania's largest trading partner for ten consecutive years. Trade between the two countries reached USD 11.28 billion in 2025, surpassing USD 10 billion for the first time, while trade was valued at USD 6.48 billion during the first six months of 2026, according to figures cited in the bank's statement.

Kariakoo is a major distribution hub for imported electronics, textiles, hardware and household goods, supplying customers across Tanzania and neighbouring countries.

Previously, businesses making payments to Chinese suppliers often had to convert Tanzanian shillings into US dollars before converting the dollars into yuan. Such transactions could involve additional currency conversion costs and delays as funds passed between banks.

The direct payment solution is designed to eliminate the need for the initial conversion into US dollars, offering traders an alternative for settling eligible transactions.

Government backs lower-cost international trade

Speaking during the activation, Minister of Industry and Trade Hon. Judith Salvio Kapinga said reducing the cost of international payments could help businesses redirect more resources towards stock, employment and expansion.

"Government wants every Tanzanian business, from the largest manufacturer to the trader in Kariakoo, to trade with the world at the lowest possible cost. Every shilling saved on a payment is a shilling that can go back into stock, jobs and growth," Kapinga said.

She commended Stanbic for taking its services directly to traders and encouraged businesses to use formal, regulated channels when paying their suppliers.

The minister also highlighted opportunities for Tanzanian exporters to increase sales to China, noting that the country had opened its market to certain African goods duty-free.

Traders welcome the initiative

Asha Mwakalinga, owner of Mwangaza Home Supplies, a Kariakoo-based household goods business, welcomed the initiative, saying it could help address challenges associated with paying suppliers in China.

"When you run a business like ours, most of the goods come from China, so making payments to suppliers is something we deal with regularly. Sometimes the process takes longer than expected, and exchange rates affect how much we spend," Mwakalinga said.

She added that paying suppliers directly in yuan from a shilling account could simplify transactions and help businesses manage their costs more effectively.

Payment terms and services for exporters

Stanbic said eligible payments can be settled within minutes, subject to normal banking requirements and operating hours.

The bank is waiving transfer fees on direct yuan payments until December 31, 2026. The service is available at all Stanbic branches to individual traders, small businesses and large companies.

Businesses can also use forward contracts to lock in exchange rates in advance, helping them manage currency fluctuations between placing an order and making payment.

Beyond imports, the bank is positioning the solution to support Tanzanian exporters seeking opportunities in the Chinese market.

Stanbic Bank Tanzania Head of Enterprise Banking, Fatma Ahmed, said the payment channel could also help exporters receive yuan directly into their Stanbic accounts.

"Since May 1, 2026, China has removed tariffs on goods from 53 African countries, Tanzania among them. That is an open door for our sesame, cashew nuts, avocados and coffee," Ahmed said.

She noted that exporters could benefit from greater certainty over the value of their shipments by using the available payment and foreign exchange solutions.

"Our job is to make sure Tanzanian businesses sell to China as confidently as they buy from it," she added.

Strengthening Tanzania-China trade links

Stanbic Bank Tanzania is a member of Standard Bank Group, which maintains a strategic partnership with the Industrial and Commercial Bank of China (ICBC).

Through the group's international network and the partnership, Stanbic aims to strengthen financial connections between Tanzania and China while helping local businesses access international payment services.

"Stanbic has served Tanzanian businesses for more than three decades, and today we served them on their own street. Tanzania is our home, and we drive her growth," Ahmed said.

The initiative reflects the bank's focus on supporting businesses involved in cross-border trade by bringing financial solutions closer to the markets where traders operate.

For Kariakoo businesses importing goods from China, the direct shilling-to-yuan payment service offers another option for settling supplier payments, while Tanzanian exporters can explore the same channel to facilitate transactions with buyers in China.

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