The agreement was signed on September 8 in Xiamen, China, during the second CIPS Cross-Border Bank-Enterprise Cooperation Event, which brought together banks, businesses and other players involved in international payments.

CIPS is China’s system for processing cross-border payments, particularly transactions made in the Chinese yuan, or renminbi (RMB).

For a Rwandan trader importing goods from China, the change could make the payment process more straightforward. The trader can convert Rwandan francs into yuan through Bank of Kigali and use the bank’s CIPS connection to pay a Chinese supplier, rather than sending the money through additional payment routes.

Bank of Kigali said it was the first bank in Rwanda, East Africa and Central Africa to become a direct participant in CIPS.

The bank said the move would strengthen Rwanda’s connection to international financial markets and support the country’s growing commercial relationship with China.

China is an important source of goods for Rwandan businesses, ranging from machinery and construction materials to consumer products. As trade grows, the ability to move money between the two countries efficiently has become increasingly important.

For businesses, the new connection could mean fewer steps when settling payments with Chinese partners and easier access to transactions in yuan.

The agreement also reflects Rwanda’s broader efforts to strengthen financial links with international markets and make cross-border trade easier for local businesses.

As economic ties between Rwanda and China continue to expand, the way businesses pay each other is becoming just as important as the goods and investments moving between the two countries.