Zambia Starts Receiving Mining Taxes in Chinese Yuan, Signals Shift in Mineral Revenue Settlement

Zambia has begun receiving mining tax payments in the Chinese yuan, marking a notable change in the settlement of mineral revenues and the management of foreign exchange flows, the Bank of Zambia has announced.

The central bank explained that since 2018, major mining companies have been settling mining taxes through the sale of United States dollars to the Bank of Zambia, which would then remit the Kwacha equivalent to the Zambia Revenue Authority. This framework initially covered mineral royalty payments introduced in September 2018 and was later extended in June 2020 to include other mining-related taxes.

However, the Bank of Zambia disclosed that in October 2025, Chinese mining firms operating in the country began paying their mining taxes in Renminbi (RMB) instead of the US dollar.

According to the central bank, the shift reflects Zambia’s evolving trade and financial dynamics, particularly with China, which remains a key destination for the country’s copper exports. The Bank noted that many Chinese mining companies already receive part or all of their export earnings in RMB, making the use of the Chinese currency a more efficient settlement option.

The Bank of Zambia further said the move aligns with its broader objective of diversifying and strengthening foreign exchange reserves, with the RMB now forming part of the country’s reserve management strategy.

The change is also viewed as a boost to bilateral relations between Zambia and China, following the decision by Presidents Hakainde Hichilema and Xi Jinping in September 2023 to elevate ties to a Comprehensive Strategic and Cooperative Partnership.

In addition, the central bank said holding a portion of foreign currency reserves in RMB is expected to improve Zambia’s ability to service its debt to China more efficiently by reducing exposure to exchange rate conversion costs.

To support the transition and enhance market transparency, the Bank of Zambia has, with effect from November 13, 2025, started publishing the Kwacha–Renminbi exchange rate on its official website.

Impact

Analysts say the move could have far-reaching implications for Zambia’s economy. Diversifying tax payments into RMB is expected to reduce over-reliance on the US dollar, strengthen foreign exchange reserves and improve liquidity management at the central bank.

The shift may also lower transaction and currency conversion costs for both government and mining firms, while reinforcing Zambia’s strategic trade and financial ties with China. Over the medium to long term, the development is expected to enhance fiscal stability and support more efficient management of mineral revenues, a critical pillar of Zambia’s economy.