Dollar’s Grip Weakens in Africa as China’s Yuan Drives a 400 Bln Trade Surge
Dollar’s Grip Weakens in Africa as China’s Yuan Drives a $400 Bln Trade Surge
The US dollar’s dominance in African trade is gradually being challenged as China expands yuan-based commerce and builds alternative financial infrastructure across the continent.
▪ China–Africa trade reached a record $348 billion in 2025, marking a 17.7% year-on-year increase, with Chinese exports to Africa jumping 25.8% to $225 billion;
▪ African banks and companies are increasingly settling trade in yuan, particularly for import financing and export payments;
▪ South Africa’s Standard Bank has integrated into China’s CIPS payment system, processing roughly $500 million in transactions within four months;
▪ China’s tariff exemptions for 53 African countries are boosting exports such as Kenyan avocado oil, South African apples, and Nigerian livestock products;
▪ The expanding role of the yuan in trade finance is being reinforced by wider access to the CIPS network.
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