A blueprint for Global South de-risking: CIPS integration, multi-currency reserves, and visa-free corridors with China
via NewsDay Zimbabwe9 min read
The Global South, particularly Africa, faces structural vulnerability due to the weaponization of the US dollar and SWIFT system, as seen in cases like Russia, Iran, and Zimbabwe. To achieve strategic autonomy, Africa needs to integrate national banking systems into China鈥檚 Cross-Border Interbank Payment System CIPS, diversify foreign reserves with US dollars, yuan, gold, and regional currencies, and establish mutual visa-free travel with China to strengthen economic and people-to-people ties. CIPS integration is crucial for breaking financial dominance, despite obstacles such as most African banks processing US dollar transactions through American correspondent banks and underrepresentation in CIPS. Implementation can occur in phases, starting with bilateral currency swap agreements with the People鈥檚 Bank of China, followed by commercial banks joining CIPS, staff training, and technical upgrades. A multi-currency and gold reserve system is vital for defense against unilateral sanctions, with a proposed allocation of 40% to US dollar assets, 30% to yuan, 20% to physical gold, and 10% to other currencies. China's zero-tariff policy for African goods, effective May 1, 2026, should be expanded with simplified rules of origin and special trade desks. Mutual visa-free travel, currently asymmetrical, can be phased in, starting with diplomatic and official passports, then business travelers, and finally tourist groups, with security measures like police clearance and an electronic t
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This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
Must ReadZimbabwe has commissioned a specialized honey testing laboratory to enhance its export competitiveness. This development is part of broader efforts in the country, which include securing duty-free access to China for nearly 9,000 products and ARDA delivering 120,000MT as Zimbabwe prepares for El Ni帽o. Other economic activities include Econet InfraCo expanding its tower rollout and advancing solar projects after its VFEX debut, and Mutapa Gold upgrading its laboratory to reduce exploration costs and boost investor confidence. ART operations have been affected by power outages and raw material shortages, leading to a 6% decline in exports and a 26% decline in paper division volumes in the third quarter to June 2022. New grain levies have been proposed as Zimbabwe addresses climate and food security risks.
Econet InfraCo is expanding its tower rollout and advancing solar projects following its debut on the VFEX. Meanwhile, ART, a manufacturer, reported a decline in export and paper division volumes by 6% and 26% respectively in the third quarter to June 2022, attributing this to power outages and raw material shortages. Zimbabwe has also secured duty-free access to China for nearly 9,000 products and commissioned a specialized honey testing laboratory to boost export competitiveness. Other developments include the government unveiling a five-year tourism strategy, ARDA delivering 120,000MT for El Ni帽o preparedness, and Mutapa Gold upgrading its laboratory to cut exploration costs.
Must ReadZimbabwe has secured duty-free access to the Chinese market for nearly 9,000 product categories under Beijing鈥檚 Pre-Early Harvest Initiative. This arrangement, effective from May 1, 2026, until April 30, 2028, allows qualifying Zimbabwean exports to enter China duty-free under 8,949 tariff lines. Information, Publicity and Broadcasting Services Minister Soda Zhemu stated that this initiative stems from commitments made by China during the 2024 Forum on China-Africa Cooperation. Zimbabwe has completed the administrative requirements, with ZimTrade issuing certificates of origin and the Zimbabwe Revenue Authority verifying compliance. Foreign Affairs and International Trade Minister Amon Murwira noted that the removal of import duties will make Zimbabwean products more competitive in China, but exporters must still meet China鈥檚 stringent regulatory and phytosanitary requirements. The government plans to continue bilateral negotiations during this two-year period to secure a permanent preferential trade agreement after the Pre-Early Harvest Initiative expires.