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Tanzanian businesses importing goods from China can now make direct payments to Chinese suppliers from their Tanzanian shilling accounts, a development expected to reduce transaction costs and simplify one of the country’s key trade corridors.
The payment arrangement, unveiled by Stanbic Bank Tanzania on August 12, was among the key issues discussed at the Tanzania-China Business Forum held at Diamond Jubilee Hall in Dar es Salaam on Thursday.
The forum brought together Tanzanian traders, Chinese businesses, government authorities and trade institutions to discuss ways of expanding trade and investment ties between the two countries.
Under the new arrangement, traders can make payments in Chinese yuan directly from their shilling accounts, eliminating the traditional requirement of converting shillings into US dollars before converting the funds into yuan.
The service is facilitated through the Cross-Border Interbank Payment System (CIPS), a Chinese financial infrastructure that enables cross-border transactions in yuan.
Stanbic said the arrangement reduces the number of currency conversions and intermediaries involved in payments, potentially helping businesses save time and better manage foreign exchange costs.
Eligible transactions can be settled within minutes, subject to banking requirements and operating hours.
For traders who regularly source goods from China, the change could address some of the uncertainties associated with exchange-rate movements and informal payment channels.
Dar es Salaam businesswoman Lulu Kheri, who has imported goods from China for several years, said exchange-rate fluctuations and informal payment arrangements have 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,” she said.
She added that some traders have also faced uncertainty when using informal channels to send money to suppliers.
“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,” Ms Kheri said.
Stanbic Bank Tanzania Head of Business and Commercial Banking Fredrick Max said the direct payment route was designed to address 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,” he said.
The bank is offering zero transfer charges on direct yuan payments until December 31, 2026.
Mr Max said the initiative was part of a broader effort to support Tanzanian businesses beyond simply facilitating financial transactions.
Stanbic is part of Standard Bank Group, which has a strategic relationship with Industrial and Commercial Bank of China (ICBC).
Through the relationship, the bank said it can help Tanzanian businesses establish commercial links with Chinese manufacturers and suppliers, as well as access Chinese buyers and trade platforms such as the China International Import Expo (CIIE).
“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 discussion also highlighted a broader challenge in Tanzania-China trade—the need for Tanzania to increase exports to China rather than relying heavily on imports.
Speaking during a panel discussion titled Fursa Kati ya Soko la Tanzania na China (Opportunities in the Tanzania-China Market), Tanzania Investment and Special Economic Zones Authority (TISEZA) Head of the China Desk Alfred Ngelula said more efficient currency settlement could also improve Tanzania's attractiveness 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.
He said lower transaction costs could strengthen Tanzania's competitiveness in attracting Chinese investment.
For Tanzania Trade Development Authority (TanTrade) Senior Trade Officer Benson Nkini, however, stronger commercial ties with China should translate into greater opportunities for Tanzanian exporters.
“We buy from China, but we also want to sell so that we improve the balance of trade,” Mr Nkini said.
He urged businesses to move beyond exporting raw agricultural commodities and instead invest in processing and manufacturing.
“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,” he said.
Stanbic Bank Tanzania Head of Trade Anthony Kimambo said the scale of Tanzania-China trade made efficient payment systems increasingly important.
“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.
He said CIPS provides businesses with a more direct bank-to-bank payment route into China by eliminating the need for transactions to pass through the US dollar.
Mr Kimambo said Stanbic's role also includes helping Tanzanian businesses establish direct relationships with manufacturers in China.
“We connect customers directly with manufacturers in China, including the factories themselves rather than relying only on middlemen,” he said.
The bank has also taken Tanzanian businesses to the China International Import Expo for four consecutive years.
The next CIIE is scheduled for November 2026, with registration expected to close in October, giving Tanzanian businesses an opportunity to meet Chinese buyers, manufacturers and potential commercial partners.
Businesses can access the direct shilling-to-yuan payment service through Stanbic Bank Tanzania branches, while existing customers can use the bank's digital channels after completing the required documentation and regulatory procedures.
The development comes as Tanzania seeks to deepen trade and investment relations with China while reducing the costs associated with cross-border transactions and creating more opportunities for Tanzanian businesses to participate in the global value chain.