Zambia has become the first African country to formally accept China’s yuan for the payment of mining taxes and royalties, underscoring Beijing’s growing financial influence in one of Africa’s most strategic resource economies.
The Bank of Zambia confirmed that yuan-denominated payments began in October, marking a change in how Africa’s second-largest copper producer manages revenue flows from its mining sector. Chinese mining companies operating in the country have started settling part of their tax obligations in renminbi, reflecting China’s position as Zambia’s largest copper buyer and a major creditor.
The central bank said the move aligns with Zambia’s reserve management strategy and export profile, as a significant share of copper exports is sold to China and many operators already receive proceeds in yuan. Holding renminbi is expected to help diversify foreign currency reserves and lower the cost of servicing Chinese debt.
To facilitate the shift, the Bank of Zambia has introduced an official yuan–kwacha exchange rate, allowing mining companies to choose between U.S. dollars and yuan for tax payments. The policy builds on earlier foreign exchange regulations aimed at strengthening reserves during Zambia’s debt restructuring period.
The move highlights a broader trend across Africa, where resource-rich economies are increasingly engaging with the yuan as China expands its influence beyond trade and investment into financial and monetary systems.
