By Costantine Muganyizi
Local businesses trading with China can now pay suppliers directly from their Tanzanian Shilling accounts into Chinese Yuan, removing the need to first convert funds into US dollars in a move that could make one of the country’s most important trading relationships faster, simpler and more cost-efficient.
The development was highlighted at a Tanzania-China business forum hosted by Stanbic Bank Tanzania in Dar es Salaam on 27/08/2026, bringing together traders, Chinese business representatives, government agencies and trade institutions to examine opportunities for strengthening commercial ties between the two markets.
Stanbic Bank launched the direct Shilling-to-Yuan payment solution on August 12, making it the first bank in Tanzania to enable customers to pay Chinese suppliers directly from a Shilling account and receive payments from China through the same route.
The service is enabled through the Cross-Border Interbank Payment System (CIPS), allowing eligible transactions to move directly between the two currencies.
Traditionally, a Tanzanian business paying a Chinese supplier could face a route of Shilling → US dollar → Yuan. The new system allows Shilling → Yuan, removing one currency conversion and reducing the number of parties involved in the transaction. For traders, the change could have a direct impact on transaction costs, exchange-rate exposure and profit margins.
Speaking at the forum, Dar es Salaam businesswoman Lulu Kheri said exchange-rate movements and informal payment arrangements have long affected traders.
“We traders look at the rate because we look at profit. Someone can quote you one rate in the morning and by midday the rate has changed,” Ms Kheri said. “Sometimes you take a lower informal rate and then you are left worrying whether the money will reach your supplier. Many traders have lost money that way.”
She said the new route provides a simpler and more predictable formal mechanism for paying Chinese suppliers.
“What matters to us is the rate, the cost and knowing the supplier will be paid,” Kheri said. “If I can put my Shillings into my Stanbic account and the Chinese supplier gets paid without an additional transfer charge, that speaks directly to the needs of traders.”
Stanbic’s Head of Business and Commercial Banking, Fredrick Max, said the solution addresses a long-standing challenge for businesses trading with China.
“For businesses trading with China, the payment process has traditionally involved converting Shillings into US dollars and then into Yuan. Our direct Shilling-to-Yuan solution removes that extra step, helping customers save time, manage costs and transact more efficiently,” Max said.
The bank said eligible transactions can settle within minutes, subject to normal banking requirements and operating hours. Direct settlement also gives businesses greater control over foreign-exchange planning while reducing reliance on informal money-changing arrangements and cash handling.
Stanbic is applying no transfer charge on direct Yuan payments through December 31, 2026, subject to the applicable terms.
China trade moves beyond payments
The significance of the new payment route is underlined by China’s position as one of Tanzania’s major trading partners.
Anthony Kimambo, Head of Trade at Stanbic Bank Tanzania, said about 3,000 out of every 10,000 Shillings Tanzania spends on imports goes to China.
“That is not a small trading partner,” Mr Kimambo said. “CIPS gives our customers a more direct bank-to-bank payment route into China by removing the need for the transaction to first pass through the US dollar.”
The potential impact also extends to investment. Alfred Ngelula, Head of the China Desk at the Tanzania Investment and Special Economic Zones Authority (TISEZA), said reducing the cost of moving capital between Yuan and Shillings could strengthen Tanzania’s appeal to Chinese investors.
“When an investor brings capital in Yuan, it has traditionally had to pass through the dollar before becoming Shillings. Take away that additional cost and you reduce the cost of investing,” Mr Ngelula said.
Benson Nkini, Senior Trade Officer at the Tanzania Trade Development Authority (TanTrade), said Tanzania should use its relationship with China to increase exports, particularly processed and higher-value products.
“We buy from China, but we also want to sell so that we improve the balance of trade,” Mr Nkini said.
Beyond moving money
Stanbic said its China strategy extends beyond processing payments.
Through Standard Bank Group’s strategic relationship with the Industrial and Commercial Bank of China (ICBC), the bank says it can help Tanzanian businesses identify credible suppliers, establish direct commercial relationships with Chinese manufacturers and reach Chinese buyers.
“We want to do more than move money to China. We want to help Tanzanian businesses build the right connections, find credible suppliers and reach new buyers for Tanzanian products,” Mr Max said.
The new Shilling-Yuan payment route therefore represents more than a banking product. It points to an evolving financial infrastructure for Tanzania-China commerce – one that could reduce payment friction for traders, lower some transaction costs for businesses and support deeper investment links. The bigger opportunity for Tanzania, however, will be turning easier access to China’s market into stronger two-way trade, with more Tanzanian businesses exporting value-added products while using more efficient financial channels to participate in the world’s second-largest economy.
