Beijing’s Yuan Push Gains Momentum Across Africa as More Nations Join China’s Payment Network

Africa is becoming a key frontier in Beijing’s strategy to elevate the Chinese yuan as a global reserve currency and reduce dependence on the U.S. dollar, with an expanding number of financial institutions integrating into China’s cross-border payment infrastructure.

In a recent development, the Central Bank of Libya is set to join the People’s Bank of China’s Cross-Border Interbank Payment System (CIPS), following high-level discussions between Libyan Central Bank Governor Naji Issa and PBOC Governor Pan Gongsheng. CIPS serves as a yuan-based alternative to the traditional SWIFT messaging network.

By connecting to CIPS, Libyan banks will be able to execute direct yuan-denominated interbank transactions, which could enhance the efficiency of bilateral trade. The state-run Libyan News Agency reported that the integration is expected to streamline commercial dealings, hasten cross-border fund transfers, and stimulate broader trade activity between Libya and China.

Beyond payment system access, Libya is exploring deeper financial ties by planning to issue panda bonds—yuan-denominated securities offered by foreign issuers in mainland China—as a potential funding mechanism for post-conflict reconstruction efforts.

Libya’s move aligns with a growing trend among African economies seeking closer financial alignment with China. Notable institutions such as the African Export-Import Bank and South Africa’s Standard Bank—the largest lender on the continent—have already connected to CIPS, enabling smoother regional and international transactions in yuan.

Additionally, Zambia has taken a pioneering step by beginning to collect taxes and royalties from Chinese mining companies in yuan. These funds are reportedly being redirected to support imports and service bilateral loans, marking a tangible shift toward local currency settlement in resource-backed partnerships.

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