South Africa bet other African countries in hosting the first clearinghouse for China’s yuan currency, which the SA Reserve Bank says will reduce the need for dollar settlement, speed up transactions with China and reduce the cost doing business with the emerging Asian giant.

The South African Reserve Bank and the People’s Bank of China announce on Tuesday they had signed a memorandum of understanding (MoU) for the purposes of clearing and settlement of Renminbi in South Africa.

Renminbi is the official name of  the Communist People’s Republic of China and means “the people’s currency” while the Yuan is the name of a unit of the Renminbi currency.

“China has become South Africa’s largest export partner and consequently, Renminbi clearing in South Africa will be immensely valuable as corporates will benefit greatly from trading and settling in Renminbi,” the SA Reserve Bank said in a statement.

China’s state news agency Xinhua said the agreement represented the first yuan clearing arrangement in Africa. The bank that will conduct the clearing is yet to be designated.

Other African countries that were under consideration for the clearinghouse included Kenya, Tanzania and Nigeria. South Africa, the second largest economy in Africa, stands out as the best financial center on the continent and easily dwarfs the continent largest economy Nigeria.

The real prize for South Africa being the first to host the Renminbi clearinghouse on the continent is the symbolism of being the continent’s business gateway with China, Reuters said in a September 2013 report.

There are already yuan clearinghouses in Singapore, Taiwan and Hong Kong.

China presence on the continent has increased over the years as the Asian giant seeks raw material to fuel its growing industrial economy. It has become a big player in Africa’s mineral, oil and other commodities markets.

Last year, the total volume of China-Africa trade reached $201.1 billion in January-November, a 5.4 percent increase over the same period a year ago, Chinese government figures showed. China accounted for 22 percent of Africa’s total trade volume in 2014, up from 3.8 percent in 2000.