Zambia has officially become the first African country to accept China’s yuan for mining taxes and royalties. This landmark shift reflects Beijing’s expanding financial influence across the continent’s strategic resource sectors. The Bank of Zambia confirmed that payments began in October, marking a pivotal change in how Africa’s second-largest copper producer manages its significant mining revenues and international partnerships.
The central bank noted that this policy aligns with its reserve-management strategy and the realities of its export market. “A large portion of copper exports go to China and the Chinese mining firms already receive some, if not all, of their payments for their exports to China in renminbi,” the Bank of Zambia stated. This enables more efficient revenue collection.
By holding yuan, the government intends to stabilize its economy and simplify its financial commitments. The bank added that holding yuan also makes it cheaper to service Chinese debt, saying it would allow Zambia “to service its debts to China in a more cost-effective manner.” This transition strengthens the yuan’s role as a viable alternative to the U.S. dollar.