LUSAKA, Zambia. – Zambia has become the first African country to accept mining tax payments in China’s yuan, a move that signals a strategic shift in how the country manages revenue from its critical mining sector.
The policy allows mining companies to pay selected tax obligations using the Chinese currency, also known as the renminbi. Officials say the change is aimed at reducing transaction costs and easing foreign exchange pressure.
Copper mining remains the backbone of Zambia’s economy. It accounts for most export earnings and a large share of government revenue. China is Zambia’s largest copper buyer and a major investor in its mining industry. As a result, many mining firms already earn revenue in yuan.
An economist based in Lusaka said the decision is “a practical adjustment rather than a political statement.”
According to him, settling taxes in yuan helps firms avoid repeated currency conversions.
“This move can improve cash flow efficiency and lower operational costs,” he explained.
The policy also reflects Zambia’s effort to reduce reliance on the US dollar. Dollar shortages have strained African economies in recent years. A regional financial analyst noted that currency diversification is becoming more common.
“Countries with strong trade links to China are exploring yuan-based settlements,” she said.
She added that Zambia’s decision could influence other resource-rich African states.
Despite the benefits, experts urge caution. Currency diversification comes with risks. An international development economist warned that exchange rate volatility must be managed carefully.
“Governments must maintain transparency and strong fiscal controls,” he said.
He added that tax revenues should remain protected from sudden currency swings. Zambian authorities say safeguards are in place. They stressed that the policy will be reviewed regularly.
Beyond mining, the move sends a broader signal about Zambia’s economic strategy.
It highlights the country’s willingness to adapt to changing global financial trends.
Analysts say the decision places Zambia at the center of Africa’s evolving trade landscape.
It also reinforces China’s growing influence in global commodity markets.
For now, Zambia’s yuan tax policy is being closely watched.
Its success could reshape how African nations handle trade and taxation in the future.
