China's New Gold Strategy Runs Through Africa

 TrendsNAfrica published on 1 July 2026 an article titled "China's New Gold Strategy Runs Through Africa:  How Beijing Is Rewriting the Global Bullion Market."

Beijing is quietly reshaping the mechanics of the international gold trade.  Its strategy involves dismantling speculative domestic paper-gold trading while building an international ecosystem centered on physical bullion, yuan-based settlements, and African mineral wealth.

About 40 percent of the world's remaining underground gold reserves are located in Africa.  China is reducing its holdings of US Treasury securities and replacing them with gold purchases, especially in Africa.  

Angolan Banks Add Chinese Yuan to Foreign-Currency Reserve Requirements

 360 Angola posted on 10 July 2026 an article titled "Angola's Central Bank Adds Chinese Yuan to Foreign-Currency Reserve Requirements."

The National Bank of Angola has determined that commercial banks operating in the domestic market must now include the Chinese renminbi (yuan) as an eligible currency for making mandatory foreign-currency reserve requirements.  This decision is an indication of Angola's deepening financial ties with China.

China Expands Yuan Clearing in Africa

 Reuters published on 26 June 2026 an article titled "China Approves Standard Bank, ICBC for Africa Yuan Clearing" by Colleen Goko.

China's central bank authorized South Africa's Standard Bank and the Industrial and Commercial Bank of China (ICBC) to clear Renminbi across Africa, as Beijing steps up efforts to promote the global use of its currency.  Standard Bank and ICBC will operate jointly as the "Renminbi Clearing Bank of Africa" with authority to clear the currency in 19 African countries.

African Bank Explores Chinese Yuan Payments Program

 Nigeria Startup News posted on 24 April 2026 an article titled "Ecobank Moves to Enable Direct Yuan Payments for Africa-China Trade by 2026" by Paulinus Sunday. 

Pan-African Ecobank is in discussion with the Bank of China to establish a settlement framework that would allow payments to be made in Chinese yuan by the end of 2026, reducing dependence on the U.S. dollar.  Ecobank's yuan settlement plan signals a growing shift towards a more diversified and multipolar payments ecosystem for African trade.

Ethiopia Moves Away from Marxist Economics

 The Washington Post published on 18 March 2026 an editorial titled "Ethiopia Starts to Bury Its Marxist Past."

The editorial comments favorably on floating Ethiopia's currency in mid-2024, allowing foreign banks to operate in the country for the first time, launching the first stock exchange of the modern era, and, especially, an ambitious privatization effort.  

While it also notes some serious challenges facing Ethiopia, it concludes that opening the economy can help make everything else easier for a country that has failed to live up to its potential for too long.  

Kenya Converts Chinese Loans from Dollar to Yuan Denomination

 Kenya's Sharp Daily published on 30 January 2026 an article titled "Kenya's Shift to Yuan-Denominated Debt: Economic Strategy, Risks, and Regional Momentum" by Ryan Macharia.

Kenya has converted three dollar-denominated loans with the Export-Import Bank of China into yuan, a restructuring expected to reduce annual debt servicing costs to China by $215 million annually.  Yuan-denominated interest rates are lower than their dollar counterparts, easing pressure on Kenya's public finances and reducing exposure to US interest rate cycles.

The International Monetary Fund cautions, however, that while currency conversion can reduce near-term costs, it also introduces exposure to Chinese currency fluctuations, which may pose new currency risks if not matched with sufficient yuan revenue streams or hedge strategies.  

Africa Becomes a Testing Ground for China's Yuan Globalization

 Discovery Alert, an AI-powered mining news publisher, posted on 19 January 2026 an article titled "China's Yuan Globalisation in Africa Accelerates Through 2026" by Muflih Hidayat.  

Africa is emerging as the testing ground for the Chinese yuan to replace the US dollar as China becomes more dominant in African trade.  Factors that support continued growth in China's yuan globalization in Africa are trade expansion, infrastructure investment, debt restructuring, regional integration, and technology advancement.  

Zambia First African Country to Allow Chinese Companies to Pay Taxes in Yuan

 Bloomberg published on 19 January 2026 an article titled "China Plants Another Africa Marker in Campaign to Globalise Yuan."

Zambia is the first African country to let Chinese companies pay taxes in yuan as Beijing seeks to internationalize the currency and dilute dollar dependence.  Other African countries may follow Zambia's example.  

Ethiopia's Currency Gamble

 Ethiopia Insight published on 27 December 2025 an analysis titled "Ethiopia's Currency Gamble" by Mintesinot Melaku.

The IMF encouraged Ethiopia to adopt a floating exchange rate.  The author explains why Ethiopia was ill-prepared to implement this currency reform program.  The core problem is the inability to generate sufficient foreign exchange income.

China Moves Deeper into African Banking

 Uganda's The Observer published on 5 December 2025 an article titled "China's Payment System Gains Ground in Africa as Afrexim, Standard Join In."

Afreximbank, Africa's multilateral trade bank, became the first major African institution to join China's Cross-Border Interbank Payment System (CIPS), enabling direct and cheaper yuan transactions.  Standard Bank Group, the continent's largest lender, followed suit.  CIPS gives China an alternative to the Western world's SWIFT. 

The Industrial and Commercial Bank of China (ICBC) owns 20 percent of the Standard Bank Group while the Export-Import Bank of China holds at least 6 percent of Afreximbank.   

IMF Warns Kenya and Ethiopia on Swapping Dollar Loans for Yuan

 The Kenya Times published on 11 November 2025 an article titled "IMF Warns Kenya of Currency Risks after Swapping Dollar Loan for Yuan" by Annah Nanjala Wekesa.  

The International Monetary Fund warns that switching Chinese debt from US dollars to yuan may lower servicing costs, but it can introduce currency risks depending on their structure.   

China Expands Its Currency in Africa

 The Diplomat published on 3 November 2025 an analysis titled "Debt Relief as Currency Strategy: China's Renminbi Push in Africa" by Monique Taylor.

Kenya has converted part of its Chinese loans from U.S. dollars into renminbi (RMB), while Ethiopia is negotiating a similar arrangement.  This allows the borrowing country to reduce its debt servicing costs and permits China to turn debt distress into a strategic opening to expand the RMB's international use.

Kenya Swaps Dollar Payments to China for Yuan

 The Kenya Times published on 7 October 2025 an article titled "How Kenya Will Save Ksh 27 Billion Annually after Major Loan Deal with China" by Jason Ndunyu.

Kenya is converting repayment from US dollars to Chinese yuan of its $5 billion loan from the Export-Import Bank of China used to build the Standard Guage Railway from Mombasa to the outskirts of Nairobi.  This agreement is expected to save Kenya about $215 million annually in debt servicing costs.   

Nigeria Seeks to Maximize Benefits of Relations with US and China

 Nigeria's P.M. News published on 16 September 2025 an article titled "Beyond Dependency: US-China Trade Rivalry as Opportunity for Nigeria" by Emmanuel Yashim.  

Drawing on a thoughtful discussion of US and China relations with key countries in Latin America, the article emphasizes that the question for Nigeria is not which partner, the United States or China, to embrace but how to manage both relationships so they serve Nigeria's national development.  The article warns of the dangers of excessive debt and suggests that Nigeria's large trade deficit with China is unsustainable.  

Kenya to Swap US Dollar Debt for Chinese Yuan

 The South China Morning Post published on 5 September 2025 an article titled "Kenya's Plan to Switch Debt Payments to China from US Dollars to Yuan Is a 'Win-Win'."

Kenya plans to convert its large debt to China from US dollars to Chinese yuan.  This would reduce interest payments for Kenya and advance China's goal of increasing the global use of its currency.  It could also set a precedent for other countries to seek debt reduction with China and reduce reliance on the US dollar.  

Sharp Increase in Chinese Exports to Africa

Business Insider Africa published on 27 August 2025 an article titled "Africa Is Becoming One of China's Favorite Markets, And Trump May Have Helped" by Chinedu Okafor.  

Chinese exports to Africa have increased by 25 percent year on year to $122 billion during the first half of 2025.  At the same time, orders from the United States have declined.  Increased US tariffs and a weaker Chinese currency have made it more attractive to purchase goods from China.  The downside of this situation for Africa is a growing trade deficit with China

Ethiopian Sovereignty: How To Maintain It

 Ethiopia Insight published on 11 August 2025 a commentary titled "Ethiopia's Sovereignty Illusion: Who Really Pulls the Strings?" by Eyob Yohannes, data analyst in Ethiopia.

The author argues that true economic power in Ethiopia lies in institutions outside the country such as the International Monetary Fund.  He says the solution is reducing dependence on Western lenders and pivoting to alternative partners such as the BRICS, African regional banks, and South-South trade blocs.

Impact of New US Sanctions on Sudan

 The Sudan Tribune published on 27 May 2025 an article titled "New U.S. Sanctions Spark Economic Fears in War-torn Sudan."

New US sanctions on Sudan that include restrictions on US exports and Sudan's access to US government credit lines plunged Sudan's parallel foreign currency markets into chaos and may have a long-term impact on remittances. 

Ethiopia's Economic Reform Program Faces Serious Challenges

 Foreign Policy posted n 19 December 2024 a commentary titled "Ethiopia's Precarious Economic Reforms" by Liam Taylor, freelance journalist based in Addis Ababa.  

The author argues that Ethiopia's economic reform package is "fraught with jeopardy."  Political instability and a history of foreign investors who have been burned in Ethiopia does not bode well for the program.  

Ethiopia: Will Monetary Reform Save the Economy?

 Ethiopia Insight published on 5 November 2024 a commentary titled "Now the Birr Floats, Will Ethiopia Sink or Swim?" by Muktar Ismail, regional analyst and former advisor to the president of Somali Region.  

Last July, Ethiopia adopted a market-determined exchange rate, lifted most current account restrictions, and modernized its monetary policy framework in order to pave the way for International Monetary Fund and World Bank bailouts.

Ethiopia has regressed from two decades of economic and social progress and faces growing economic challenges.  The recent economic policy reform has witnessed a plummeting depreciation of the currency and strong inflationary pressure.  The author concludes that IMF and donor financing are unlikely to stabilize an economy plagued by conflict, poor management, and rapid currency depreciation.