Dar es Salaam. Tanzanian businesses importing from China can now pay suppliers directly from their Tanzanian shilling accounts in Chinese yuan, eliminating the need to first convert funds into US dollars.
The payment solution was showcased at a Tanzania-China business forum hosted by Stanbic Bank Tanzania at Diamond Jubilee Hall in Dar es Salaam on Thursday, August 27, 2026.
The forum brought together Tanzanian traders, Chinese business representatives, government agencies and trade institutions to discuss opportunities for strengthening trade and investment between the two markets.
The direct shilling-to-yuan payment solution, launched on August 12, makes Stanbic 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). By eliminating the need to convert shillings into US dollars before converting to yuan, the solution removes one currency conversion and reduces the number of parties involved in a transaction.
Eligible transactions can settle within minutes, subject to normal banking requirements and operating hours.
For traders, the service is expected to address some of the challenges associated with exchange-rate movements and informal payment arrangements.
Dar es Salaam businesswoman Lulu Kheri, who has imported goods from China for several years, said exchange-rate fluctuations and informal payment arrangements had affected traders’ costs and profit margins.
“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. 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,” Ms Kheri said.
She said the direct shilling-to-yuan solution offered traders a simpler and more predictable formal payment route.
“What matters to us is the rate, the cost and knowing the supplier will be paid. 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,” she said.
“When money is being reduced at every stage of a transaction, eventually it affects your profit.”
Stanbic Bank Tanzania Head of Business and Commercial Banking Fredrick Max said the new payment route addressed a longstanding 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,” Mr Max said.
He said direct settlement also gave businesses greater control over foreign exchange planning while reducing reliance on informal money-changing arrangements, cash handling and unnecessary travel to make payments.
Stanbic will charge no transfer fee on direct yuan payments through December 31, 2026.
Mr Max said the bank’s ambition extended beyond facilitating payments.
Stanbic is part of Standard Bank Group, which has a strategic relationship with the Industrial and Commercial Bank of China (ICBC). Through the network, the bank helps Tanzanian businesses identify credible suppliers, establish direct commercial relationships in China and access Chinese buyers, including through platforms such as the China International Import Expo.
“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,” he said.
The theme was also explored during a panel discussion titled “Fursa Kati ya Soko la Tanzania na China”, or Opportunities in the Tanzania-China Market, which examined how traders, exporters and investors could use the payment solution alongside existing trade and investment support.
Tanzania Investment and Special Economic Zones Authority (TISEZA) Head of China Desk Alfred Ngelula said reducing the cost of moving capital between yuan and shillings would strengthen Tanzania’s proposition 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.
“That is important for an investor because it improves competitiveness and gives us another strong reason to tell Chinese investors that Tanzania is the right place to invest.”
Tanzania Trade Development Authority (TanTrade) senior trade officer Benson Nkini said Tanzania should use its growing relationship with China to increase exports while placing greater emphasis on locally processed products.
“We buy from China, but we also want to sell so that we improve the balance of trade,” Mr Nkini said.
“We do not want to see our crops exported mainly in raw form. When we export raw products, we lose income, jobs and the value from by-products. We want to see more finished products carrying the Made in Tanzania mark reaching international markets.”
Stanbic Bank Tanzania Head of Trade Anthony Kimambo said the scale of trade with China underlined the importance of making payments simpler and more efficient.
“For every 10,000 shillings Tanzania spends importing goods, about 3,000 shillings 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.”
He said Stanbic’s role extended beyond facilitating payments, including helping Tanzanian businesses establish direct links with Chinese manufacturers.
“We connect customers directly with manufacturers in China, including the factories themselves rather than relying only on middlemen. A customer provides the specifications and agrees the commercial terms, and we help strengthen the link between the two parties,” Mr Kimambo said.
“On the exporter side, we also support businesses so that when they send their goods, they have greater confidence around how they will be paid.”
Stanbic has taken Tanzanian customers to the China International Import Expo for four consecutive years. The next expo is scheduled for November 2026, with registration closing in October.
The event will provide Tanzanian businesses with an opportunity to engage Chinese buyers, manufacturers and potential commercial partners.
Businesses can access the direct shilling-to-yuan payment service at any Stanbic Bank Tanzania branch. Existing customers can also transact through the bank’s digital channels after completing the required documentation and regulatory processes.
