By Business Insider Reporter
Stanbic Bank Tanzania took its direct shilling-to-yuan payment service to Kariakoo traders on October 13, demonstrating how businesses importing goods from China can pay suppliers directly in yuan from Tanzanian shilling accounts without first converting their money into US dollars.
The activation, attended by Industry and Trade Minister Judith Kapinga, brought the banking service directly to shops and warehouses in one of the country’s busiest commercial centres, where traders depend heavily on Chinese suppliers for electronics, textiles, hardware and household goods.
Launched on August 12, 2026, the service uses China’s Cross-Border Interbank Payment System (CIPS). Stanbic was the first bank in Tanzania to introduce the facility, which aims to simplify international payments, reduce currency-conversion costs and improve transaction efficiency.
“Kariakoo is one of Tanzania’s most important commercial centres, connecting thousands of traders to suppliers and markets across the world. As Stanbic, we understand that businesses need financial solutions that make international trade easier, faster and more efficient,” said Jonathan Ngoma, Head of Internal Audit at Stanbic Bank Tanzania.
“By bringing our direct shilling-to-yuan payment solution closer to traders, we are helping them simplify payments to Chinese suppliers, manage transaction costs and focus more on growing their businesses,” he added.
The initiative comes as trade between Tanzania and China continues to expand. China has been Tanzania’s largest trading partner for ten consecutive years, with bilateral trade reaching US$11.28 billion in 2025. The lender said trade between the two countries stood at US$6.48 billion in the first six months of 2026 alone.
Under the conventional payment route, importers are required to convert shillings into US dollars before converting the dollars into yuan, potentially incurring costs at both stages and facing delays as payments move between banks.
Stanbic says eligible direct yuan payments can settle within minutes, subject to normal banking requirements and operating hours. The bank is waiving transfer fees on the service until December 31, 2026, and offers forward contracts that allow businesses to lock in exchange rates in advance.
For Kariakoo traders, the potential benefits include greater predictability when calculating import costs and managing working capital.
Asha Mwakalinga, owner of Mwangaza Home Supplies, which deals in household goods, welcomed the initiative, citing the challenges of paying Chinese suppliers.
“When you run a business like ours, most of the goods come from China, so making payments to suppliers is something we deal with regularly. Sometimes the process takes longer than expected, and exchange rates affect how much we spend,” she said.
“Having a solution that allows us to pay directly in yuan from our shilling accounts would make things easier and help us manage our business costs better.”
Minister Kapinga said reducing trade-related costs was important for businesses of all sizes, urging traders to use formal payment channels.
“The Government wants every Tanzanian business, from the largest manufacturer to the trader in Kariakoo, to trade with the world at the lowest possible cost. Every shilling saved on a payment is a shilling that can go back into stock, jobs and growth,” she said.
“I commend Stanbic for leaving the office and coming to where our traders work, and I urge traders to use formal, regulated channels when they pay their suppliers. China has opened its market to some of our goods duty free. Now we must sell to China as much as we buy from it.”
Stanbic is positioning the service as a two-way trade solution, extending its potential benefits to Tanzanian exporters receiving payments from Chinese buyers.
Fatma Ahmed, Head of Enterprise Banking at Stanbic Bank Tanzania, said China’s reported removal of tariffs on goods from 53 African countries, including Tanzania, from May 1, 2026, presented an opportunity for local producers.
“This route runs both ways. Since 1 May 2026, China has removed tariffs on goods from 53 African countries, Tanzania among them. That is an open door for our sesame, cashew nuts, avocados and coffee,” she said.
“An exporter can now receive yuan straight into a Stanbic account and know exactly what a shipment will earn before it leaves the port. Our job is to make sure Tanzanian businesses sell to China as confidently as they buy from it.”
Ms Ahmed added: “Stanbic has served Tanzanian businesses for more than three decades, and today we served them on their own street. Tanzania is our home, and we drive her growth.” The service is available through all Stanbic branches.
