China-Africa Trade Surges After Full Tariff Exemption as RMB Settlement Accelerates Across Africa
N.R. Finch
China scrapped tariffs on all goods from 53 African nations on May 1, compounding a near-18% annual surge in China-Africa trade and pushing renminbi settlement deeper into the continent across trade, payments infrastructure, and sovereign debt.
What does zero tariff actually unlock?
Starting May 1, China imposed zero tariffs on all goods from 53 African countries — from Nigerian bone grit to Kenyan avocado oil and South African apples.
China-Africa trade grew nearly 18% last year. China's total renminbi-denominated trade hit ¥4.38 trillion (about $647 billion) in April, up 14% year-on-year, though no Africa-specific breakdown was disclosed.
This means → removing the tariff floor lowers the entry barrier for African goods into China; the more trade flows, the more renminbi settlement demand follows — a self-reinforcing loop.
How far has the payments plumbing reached?
South Africa's Standard Bank connected to CIPS — China's cross-border interbank payment system, a renminbi clearing network that bypasses dollar settlement — in November last year and processed $500 million in transactions within four months, with plans to expand across more African markets.
Standard Chartered Kenya now issues renminbi-denominated letters of credit, letting clients skip dollar conversion costs and capture exchange-rate discounts.
Ecobank, headquartered in Togo and operating in 34 African countries, is developing a direct renminbi-to-local-currency settlement product with Bank of China, targeting launch this year.
In plain terms = China is laying renminbi payment rails across Africa one bank at a time, aiming for near-instant cross-border settlement.
How does sovereign debt add momentum?
Africa Export-Import Bank data shows China now accounts for 20% of the continent's external trade, up from just 5% two decades ago. China is also the largest bilateral creditor to Senegal, Ethiopia, Kenya, and others.
Kenya last year converted three Chinese railway loans from dollars to renminbi, saving roughly $215 million a year in interest costs.
Zambia announced in late 2025 that it would begin accepting renminbi from Chinese firms for mining royalties and taxes — bolstering its foreign-exchange reserves and servicing its debt to China.
This means → when a country owes China enough, repaying in renminbi becomes cheaper than repaying in dollars — the debt relationship itself becomes a channel for renminbi adoption.
Will the renminbi actually replace the dollar?
Standard Chartered Kenya CEO Birju Sanghrajka stated plainly that there is almost no sign of the renminbi displacing the dollar — "We see it as complementary."
Nigerian Enterprise Promotion Centre CEO Muda Yusuf noted that the global conversation is shifting toward reducing dollar dominance, and China is actively pushing renminbi settlement — "When you export to them, you receive renminbi."
This reflects the renminbi's real position in Africa: not an attempt to overthrow the dollar, but a parallel system being built simultaneously along trade, payments, and debt. Whether the renminbi can evolve from a settlement tool into a reserve currency will be the key test of this expansion's depth.
Content is for reference only, not financial advice.