Bank of Kigali CEO Dr Diane Karusisi (L) with Chinese hosts during the signing
KIGALI — Bank of Kigali has become the first bank in Rwanda, and the first bank headquartered in East and Central Africa, to join China’s main cross-border payments system as a direct participant, the bank said Tuesday.
The move gives Rwanda’s biggest bank direct access to China’s Cross-Border Interbank Payment System, or CIPS, which handles international payments in China’s currency, the renminbi.
The agreement was signed on September 8 in Xiamen, China, during the second CIPS Cross-Border Bank-Enterprise Cooperation Event.
Bank of Kigali said the new connection would make payments between Rwanda and China faster and more direct.
The bank said it would also reduce the number of intermediaries involved in some transactions.
That could be significant for companies importing goods from China or selling Rwandan products to the Chinese market.
CIPS was launched in 2015 under the oversight of the People’s Bank of China. It provides clearing and settlement services for cross-border transactions denominated in renminbi.
Banks that participate directly in the system can process RMB transactions through CIPS rather than relying on several intermediary banks.
For businesses, that can reduce the time and cost involved in moving money between the two countries.
CIPS is not a replacement for SWIFT
The move does not mean Bank of Kigali is replacing SWIFT, the global network used by banks to exchange payment instructions.
The two systems perform different functions and can work together.
SWIFT is primarily a secure messaging network. It sends payment instructions between financial institutions but does not itself move or settle the money.
CIPS, by contrast, is a Chinese clearing and settlement system. It processes and settles payments in renminbi.
CIPS is therefore focused mainly on RMB transactions, while SWIFT supports banking transactions involving multiple currencies around the world.
Many CIPS transactions can still use SWIFT for messaging, particularly when banks are participating indirectly in the Chinese system.
Bank of Kigali’s direct participation gives it a more direct connection to the CIPS settlement network for RMB transactions.
The significance for the bank is therefore less about choosing between two competing systems and more about gaining a direct route into China’s renminbi payment infrastructure.
China is Rwanda’s biggest trading partner
The development comes as China has become Rwanda’s largest trading partner.
The expansion comes as economic activity between Rwanda and China continues to generate demand for financial services. Trade between the two countries rose sharply between 2021 and 2024, reaching about $1.76 billion in 2024.
Data from Rwanda’s National Institute of Statistics show that China accounted for 26.7 percent of Rwanda’s imports in the first quarter of 2026.
Those imports were worth about $355.5 million.
China also accounted for 25.8 percent of Rwanda’s domestic exports during the same period, worth nearly $95 million.
Rwanda exports coffee, tea, chili, minerals and other products to China.
The growth in exports has been helped by China’s decision to remove tariffs on imports from least-developed countries, including Rwanda.
The new payment link could therefore serve both sides of the trade relationship.
Rwandan importers could have a more direct way to pay Chinese suppliers in renminbi.
Rwandan exporters could also receive payments in the Chinese currency through a banking channel connected directly to CIPS.
A move beyond trade
Bank of Kigali has been expanding services for Chinese companies operating in Rwanda and for Rwandan businesses seeking opportunities in China.
The bank said joining CIPS is part of its wider effort to modernise international payments and strengthen Rwanda’s links with global financial systems.
The move also comes during the bank’s 60th anniversary celebrations.
For Rwanda, the significance goes beyond one bank gaining access to a payment platform.
China is already a major source of imported goods, investment and infrastructure financing for the country. A more direct RMB payment channel could make financial transactions between the two markets easier as trade and business ties expand.
It also gives Rwandan businesses a more direct connection to China’s financial infrastructure at a time when the renminbi is being used more widely in international trade.
Bank of Kigali said its CIPS participation will strengthen the financial link between Rwanda and China and make international payments “simpler, faster and more connected.”
The immediate test will be whether the new connection translates into lower transaction costs, faster settlement and greater use of the renminbi by businesses trading between Rwanda and China.
