Lusaka, Jan 2 – Chinese-owned mining companies operating in Zambia have begun paying royalties and taxes in yuan, underscoring the growing acceptance of China’s currency across Africa’s resource sector.
Payments using the renminbi started in October, the Bank of Zambia said in response to emailed questions on Wednesday. The move makes Zambia the first African country to formally confirm that it is accepting mining-related tax payments in yuan.
Zambia is Africa’s second-largest copper producer and hosts a significant number of Chinese mining firms, reflecting Beijing’s long-standing investment footprint in the country’s mining industry.
The shift toward yuan-denominated payments highlights a broader trend of expanding currency diversification on the continent, as governments and companies seek alternatives to the U.S. dollar for trade and financial transactions.
Analysts say the development could reduce foreign exchange pressures for Chinese firms operating in Zambia while deepening financial ties between Lusaka and Beijing. It may also signal greater use of the yuan in cross-border commodity transactions across Africa, particularly in countries with strong Chinese investment.
While the Bank of Zambia did not disclose the volume of taxes paid in yuan, the decision marks a notable step in the internationalization of China’s currency within Africa’s extractive industries.
