Kenya and Rwanda are among a group of African countries taking steps to incorporate China’s renminbi into their foreign-exchange reserve and settlement strategies, reflecting growing efforts across the continent to diversify away from heavy reliance on the US dollar.
According to the Absa Africa Financial Markets Index 2025, Nigeria, South Africa, Kenya and Rwanda have either signed renminbi swap agreements or begun using the Chinese currency for certain trade settlements. The report describes the move as part of a broader shift in African reserve management and international payments.
The development comes as China’s economic and commercial links with Africa continue to expand. For countries with significant trade or financial transactions involving China, greater use of the renminbi can provide an additional channel for settling transactions and accessing liquidity.
Diversifying foreign-exchange reserves
Absa notes that central banks are increasingly looking at diversification as a way of reducing concentration in the US dollar. Renminbi swap arrangements can provide an alternative source of liquidity, particularly when dollar availability becomes constrained, while holding or using the Chinese currency can help broaden the composition of foreign-exchange assets.
The shift does not, however, mean that the dollar is being displaced from its dominant position. Absa has noted that the US dollar continues to account for the vast majority of global trade transactions, while renminbi markets remain less liquid and less widely used in Africa.
For African economies, the growing role of the renminbi therefore represents an additional instrument in foreign-exchange and trade management rather than an immediate replacement for the dollar.
Kenya deepens financial links with China
Kenya has also taken steps to expand the role of the renminbi in its financial relationship with China. In June 2026, the country agreed to convert Chinese railway loans from US dollars into Chinese yuan, a move that attracted interest from other developing economies, according to AidData. Reuters reported that the restructuring could reduce Kenya’s annual debt-service costs by about $215 million, while also highlighting the currency risks associated with borrowing in a currency with lower global liquidity than the dollar.
Kenya’s central bank has meanwhile reported relatively stable foreign-exchange conditions during the first half of 2026, supported by export receipts, tourism revenues and remittances.
A changing African financial landscape
The growing use of the renminbi is taking place against a broader transformation of African financial markets. The Absa Africa Financial Markets Index tracks developments across 29 African economies and focuses on areas including market accessibility, openness, transparency and financial infrastructure.
For African countries, diversification offers potential benefits in managing foreign-currency liquidity and facilitating trade with major economic partners. At the same time, Absa cautions that greater renminbi use will require improved reporting standards, sufficient market liquidity and broader acceptance of the currency in transactions.
The trend consequently illustrates the changing structure of Africa’s external economic relationships, with China playing an increasingly visible role in trade, finance and cross-border payments while the US dollar remains the principal international currency.
À propos de l'auteur
