NAIROBI, July 31 (Xinhua) -- Stanbic Bank Kenya, a subsidiary of Standard Bank Group, on Friday launched China's Cross-Border Interbank Payment System (CIPS) to facilitate direct renminbi (RMB) transactions, a move expected to further promote trade and investment between Kenya and China.
Senior industry executives, diplomats, and entrepreneurs from China and Kenya attended the official go-live ceremony of CIPS, which is expected to enable Stanbic Bank Kenya to process direct RMB payments.
Guo Haiyan, Chinese ambassador to Kenya, said that infrastructure for RMB cross-border payments and settlements across Africa has improved rapidly, reaffirming China's commitment to deepening financial cooperation with the continent.
China stands ready to work with African financial institutions and the business community to further expand the use of RMB in bilateral trade and investment, better serve the needs of enterprises, and inject new momentum into China-Africa cooperation, Guo said.
CIPS is one of the world's major payment infrastructures for cross-border trade and will facilitate faster RMB payments, reduce reliance on conventional banking channels, and improve transaction efficiency for Kenyan and Chinese businesses, Stanbic Bank Kenya executives said.
Jonathan Muga, head of Corporate and Investment Banking at Stanbic Bank Kenya, underscored the growing China-Kenya trade and investment ties, saying they would be further strengthened by a seamless RMB cross-border payment infrastructure.
"As businesses increasingly seek faster, more transparent and efficient ways to transact, our ability to process RMB payments through CIPS represents a significant milestone in strengthening the Kenya-China trade corridor," Muga said.
He noted that Standard Bank Group's established CIPS capabilities have already processed more than 8 billion yuan in transaction value, enabling clients to conduct trade with greater speed, efficiency, and confidence.
Standard Bank Group and the Industrial and Commercial Bank of China were recently jointly authorized by the People's Bank of China to operate as RMB clearing banks for Africa, making Standard Bank the first African financial institution with direct RMB clearing status and enabling RMB clearance across 19 African countries. ■