Is Africa trading the dollar for the yuan?
As China doubles down on its economic presence in Africa, the relationship is entering a new phase that goes beyond bricks and mortar.
The Beijing Action Plan 2025-2027 includes support for 30 infrastructure connectivity projects across Africa, while countries such as Kenya and Uganda are already reviving Chinese-backed transport links, such as the Standard Gauge Railway extension and the Rironi-Mau Summit highway toward the Uganda border.
For analysts watching the continent’s financial future, these developments matter not only because they move goods but also because they may create the commercial architecture for a parallel payment system built around China’s Digital RMB (digital yuan/e-CNY), potentially giving African economies a faster, less dollar-dependent way to trade.
The Western-dominated global payments system, centered on SWIFT and intermediary banks, has long been criticized for high transaction costs, delays, and vulnerability to geopolitical pressure. But as China expands its digital cross-border payment system while deepening ties with Africa, analysts say the platform could mark a significant shift in how the continent moves money across borders.
‘Potential to reduce exposure to Western-controlled financial systems’
Michael Owuor, a development and transnational organized crimes expert based in Nairobi, observes that for many countries in Africa, China’s digital yuan is “slowly redefining traditional geo-commerce relationships by providing alternative financial platforms for trade.”
“For African........
