Businesses trading between Ghana and China will benefit from faster and potentially cheaper payments following the introduction of the Cross-Border Interbank Payment System (CIPS) in Ghana. The Chief Executive of Stanbic Bank Ghana, Mr. Kwamina Asomaning, announced this at the Ghana-China Day in Accra. CIPS provides a direct payment route to Chinese counterparties, reducing the need for US correspondent or intermediary banks. This development is expected to improve turnaround times and reduce costs for businesses engaged in Ghana-China trade.
CIPS is a wholesale payment system authorised by the People’s Bank of China that facilitates payments in Chinese yuan (RMB). It gives businesses a more direct route to settle eligible transactions in RMB, cutting their reliance on correspondent and intermediary banks. According to Mr. Asomaning, traditional payments between Ghana and China passed through intermediary banks, resulting in longer processing times and additional costs. The introduction of CIPS is expected to support more two-way currency flows, allowing eligible businesses to make and receive payments in RMB.
The introduction of CIPS is significant, given Ghana’s deepening trade relationship with China. In 2024, China accounted for 22.3% of Ghana’s imports. Mr. Asomaning believes that the relationship should now expand beyond trade in goods and infrastructure to include investment, manufacturing, technology transfer, and higher-value services. He emphasised the need to build financial connectivity, productive capacity, and shared value between the two countries.
Stanbic Bank Ghana’s ability to offer CIPS and RMB services is anchored in a strategic partnership with the Industrial and Commercial Bank of China (ICBC). The partnership, which dates back to 2008, brings together the world’s largest bank by assets and Africa’s largest banking group. The Chief Executive Officer of the ICBC African Representative Office, Mr. LI Li, described Stanbic Bank Ghana’s launch of CIPS services as an important milestone for the development of RMB business in Ghana.
The partnership between ICBC and Stanbic Bank Ghana spans client services, product development, system connectivity, staff exchanges, and risk management. This collaboration continues to support more efficient settlement between Ghana and China. Mr. Li said the partnership would continue to provide businesses with innovative RMB financial services. Businesses seeking to use the service must hold an account with Stanbic Bank Ghana and visit any Stanbic branch to initiate a transaction.
To use the CIPS service, businesses need to indicate Chinese yuan as the payment currency and provide the required supporting documentation. Requests submitted by 2:00 p.m. GMT can be processed for next-business-day settlement, subject to applicable regulatory and compliance requirements. The Ghana-China Day was organised by Stanbic Bank Ghana in partnership with ICBC under the theme “Connecting Capital, Commerce, and Opportunity in the Ghana-China Corridor.”
The event brought together stakeholders from the financial and business communities to discuss ways to deepen economic and commercial ties between Ghana and China. Mr. Asomaning assured that Stanbic Bank would continue working to remove financial barriers for businesses operating along the Ghana-China trade corridor. He emphasised that when a business crosses a border, its bank should not become another border.
Key points
- Businesses trading between Ghana and China will benefit from faster and potentially cheaper payments following the introduction of the Cross-Border Interbank Payment System (CIPS) in Ghana.
- The introduction of CIPS is expected to support more two-way currency flows, allowing eligible businesses to make and receive payments in RMB.
- Stanbic Bank Ghana’s ability to offer CIPS and RMB services is anchored in a strategic partnership with the Industrial and Commercial Bank of China (ICBC).
