The Bank of Zambia has confirmed that the country has started receiving mining tax payments in the Chinese yuan (Renminbi), marking a notable shift in the settlement of mineral revenues.
According to the central bank, since 2018, major mining companies have been paying mining-related taxes through the sale of United States dollars to the Bank of Zambia. The bank would then remit the Kwacha equivalent to the Zambia Revenue Authority (ZRA). This system applied to mineral royalty payments introduced in September 2018, as well as other mining taxes that came into effect in June 2020.
However, in October 2025, Chinese-owned mining firms operating in Zambia began settling their mining tax obligations in Renminbi instead of US dollars.
The Bank of Zambia says the move is driven by several factors. A significant portion of Zambia’s copper exports is destined for China, and many Chinese mining companies already receive part or all of their export earnings in Renminbi. Accepting tax payments in the same currency therefore reduces transaction costs and currency conversion requirements.
The central bank adds that the shift aligns with its strategy to diversify and strengthen Zambia’s foreign exchange reserves, with the Renminbi now forming part of the reserve basket.
The decision is also expected to enhance bilateral cooperation between Zambia and China, following the upgrade of diplomatic relations to a Comprehensive Strategic and Cooperative Partnership agreed by Presidents Hakainde Hichilema and Xi Jinping in September 2023.
Furthermore, holding part of Zambia’s foreign currency reserves in Renminbi is anticipated to improve the country’s ability to service its debt to China more efficiently, by reducing exposure to exchange rate conversion costs.
To facilitate the transition, the Bank of Zambia has begun publishing the Kwacha–Renminbi exchange rate on its official website, effective November 13, 2025.
By Rachel Mumba
