03/01/2026
Zambia Accepting the Yuan for Mining Taxes
Zambia has become the first African country to accept China’s yuan (RMB) for mining taxes and this is a big strategic shift. This is important for the following reasons:
(a) China is Zambia’s biggest copper buyer and a major creditor.
Total trade between Zambia and China reached approximately US $6.08 billion by late 2024, with Zambia’s exports to China around US $4.82 billion, reflecting broader growth in exports including copper and other goods.
Accepting yuan aligns tax revenue with how Zambia already earns and owes money.
(b) Cheaper debt servicing.
According to recent reporting, Zambia owed about US $5.7 billion to China as of late 2025, making China the largest official bilateral creditor of Zambia.
By collecting yuan directly, Zambia avoids costly currency conversions when paying Chinese loans, saving scarce foreign exchange.
(c) Reserve diversification. The Bank of Zambia can now hold more yuan, reducing over-dependence on the US dollar.
(d) China’s growing financial footprint.
Beijing now influences not just trade and loans, but also how Zambia collects its national revenue.
The upside: efficiency, cost savings, smoother debt payments.
The risk: deeper financial dependence on one partner and reduced monetary flexibility.
Remember that this measure goes beyond just being a currency issue, it is also about who shapes Zambia’s financial future.
From my desk, I say this is a very good move!
Yours Truly,
Hon Sunday Chanda - MP
Kanchibiya Constituency
