A policy first for Africa’s mining finance
Zambia has become the first African country to allow Chinese mining companies to pay their taxes in yuan, according to African economic press. News24 reports that Zambia announced the decision on 31 December 2025, placing the measure at the intersection of fiscal policy and shifting currency practices in commodity markets.
- A policy first for Africa’s mining finance
- Central bank confirmation and early adoption by miners
- Copper exports and the market logic behind the yuan option
- Trade figures underline Beijing’s central role
- Debt management as a second strategic driver
- What changes—and what remains unchanged
- A currency signal with regional and investor implications
- A calibrated move in Zambia’s external economic diplomacy
Central bank confirmation and early adoption by miners
Afrik.com notes that the Zambian central bank confirmed the measure entered into force in October 2025. The same outlet reports that several Chinese mining companies have already begun settling part of their tax obligations in the Chinese currency, suggesting the framework is not merely symbolic but already operational in selected payments.
Copper exports and the market logic behind the yuan option
For Zambia, a major copper producer in Southern Africa, the rationale is presented as pragmatic. With a large share of exports directed to the Chinese market, accepting yuan is framed as an adjustment to trading realities rather than a wholesale change in monetary orientation, aligning tax collection with the currency ecosystem of key buyers.
Trade figures underline Beijing’s central role
The scale of bilateral commerce is repeatedly cited to explain the policy’s appeal. In 2024, trade between Zambia and China reached 6.08 billion dollars, including 4.82 billion dollars in Zambian exports, mainly copper. Those numbers help explain why a settlement currency used in the destination market is gaining room in Lusaka’s fiscal toolbox.
Debt management as a second strategic driver
Another argument highlighted in the reporting concerns Zambia’s debt exposure to China. The country’s debt to Beijing is estimated at more than 4 billion dollars, making China Lusaka’s main creditor. Zambia’s central bank, as relayed by the press, indicates that accepting yuan could enable more advantageous repayment conditions for this debt.
What changes—and what remains unchanged
The measure, as described, applies to tax payments by Chinese mining firms and is already being used for a portion of dues. It does not, in the available reporting, suggest a broader overhaul of Zambia’s tax system or currency regime. Instead, it reads as a targeted instrument meant to reduce frictions where trade, taxation and external liabilities meet.
A currency signal with regional and investor implications
In a sector where revenues, costs and financing often span currencies, allowing yuan tax payments can be interpreted as a signal to major investors about administrative flexibility. The decision may also be watched across African mining jurisdictions facing similar trade patterns with China, even if the sources only establish Zambia as the first mover in this specific form.
A calibrated move in Zambia’s external economic diplomacy
Taken together, the reporting presents Zambia’s choice as a calibrated response to two constraints: the currency geography of its copper exports and the structure of its China-linked debt. By bringing the yuan into tax collection for some firms, Lusaka appears to be testing a narrower, practical lever within its broader economic diplomacy.
