By Bank of Kigali has signed an agreement to become a direct participant in China’s Cross-Border Interbank Payment System (CIPS), giving the Rwandan lender direct access to a network used for cross-border payments in China’s renminbi currency.
The agreement was signed on Sept. 8 in Xiamen, China, during the second CIPS Cross-Border Bank-Enterprise Cooperation Event, according to Bank of Kigali. The bank said it is the first bank headquartered in Rwanda and the first in East and Central Africa to secure direct participation in CIPS.
The development could provide businesses trading between Rwanda and China with a more direct channel for settling transactions in renminbi, also known as the yuan.
CIPS, or the Cross-Border Interbank Payment System, is China’s financial infrastructure for cross-border renminbi payments and settlement.
The system was launched in 2015, with its second phase becoming fully operational in 2018. It supports cross-border renminbi payments and a range of settlement services for participating financial institutions.
For Bank of Kigali, joining CIPS changes how the bank can connect to China’s renminbi payment infrastructure. Direct participants can initiate transactions through the system themselves, while indirect participants access CIPS through another participating institution.
Bank of Kigali said the arrangement would strengthen financial connections between Rwanda and China and support faster and more direct cross-border payments.
The bank did not disclose specific figures for expected reductions in transaction costs or payment times, and it has not stated when customers will begin using the new direct connection.
The agreement comes as Rwanda’s commercial relationship with China expands.
Data cited by Rwanda’s National Institute of Statistics and reported by KT Press showed China accounted for 26.7% of Rwanda’s imports in the first quarter of 2026, worth about $355.5 million. China also accounted for 25.8% of Rwanda’s domestic exports during the period, valued at nearly $95 million, according to the report.
Rwanda’s central bank has also reported continued growth in the country’s external trade. Its 2024/25 annual report said total merchandise exports rose 16.7% to $3.0 billion, while imports increased 7.1% to $5.82 billion.
The scale of trade between Rwanda and China means payment infrastructure can affect companies importing goods, exporting products and conducting other commercial transactions between the two markets.
Rwandan companies buying machinery, equipment, consumer products and other goods from Chinese suppliers may use renminbi settlement through banks participating in China’s payment infrastructure.
Chinese companies operating in Rwanda may also benefit from a more direct banking connection for payments involving the Chinese currency.
The move also fits into Bank of Kigali’s broader efforts to expand its services for businesses connected to China. In August, the Chinese Embassy in Rwanda said the bank was working with Chinese businesses and highlighted CIPS as having potential to facilitate cross-border settlements and reduce transaction costs.
Bank of Kigali had previously been working toward direct participation in CIPS. In August, the bank said it was considering renminbi-denominated accounts that could allow Chinese customers to hold funds in yuan rather than first converting them into Rwandan francs or U.S. dollars, according to KT Press.
The bank’s entry into CIPS also comes as the Chinese payment network expands its international participation.
CIPS said in September that it had signed agreements with 11 foreign institutions during the Xiamen event, while other banks formally began operating as direct participants. The system’s operator describes CIPS as a major financial-market infrastructure supporting cross-border renminbi payments and settlement.
CIPS is not simply a replacement for the global SWIFT messaging network. Banks can participate in CIPS directly or indirectly, and transactions involving CIPS can still involve other international banking and messaging arrangements.
Its principal role is to provide infrastructure for clearing and settling cross-border transactions involving the renminbi.
For Bank of Kigali, direct participation therefore provides a more direct connection to China’s renminbi settlement infrastructure rather than removing the wider international banking system from cross-border payments.
The practical impact will depend on how the service is implemented, the products Bank of Kigali offers customers and the volume of transactions eventually routed through the system.
For Rwanda’s banks and businesses, the development comes at a time when China remains an important trading and investment partner. Rwanda’s foreign private capital data show China among the country’s sources of foreign investment, while the two countries have continued to deepen economic ties.
The Bank of Kigali CIPS agreement consequently gives the Rwandan lender a direct connection to China’s renminbi payment infrastructure and could provide another channel for financial transactions between the two economies as bilateral trade develops.
