Zambia’s Mines Begin Paying Taxes in Chinese Yuan; RMB Gains

Zambia starts accepting Chinese yuan for mining royalties and taxes, diversifying reserves amid Beijing’s push to internationalize the renminbi

  • Chinese mining firms in **Zambia** have started paying royalties and taxes in the Chinese yuan.
  • The Bank of Zambia confirmed that payments in the Chinese yuan began in October.
  • This marks the first known case in Africa of taxes being paid to a government in yuan.
  • **Zambia** is holding part of its foreign reserves in yuan as the currency gains market share.
  • The shift reflects broader efforts by **China** and the **Belt and Road Initiative (BRI)** to increase yuan use beyond the BRICS grouping and to compete with the U.S. dollar.

Chinese mining firms in Zambia began paying royalties and taxes in the Chinese yuan in October, the central bank confirmed. The Bank of Zambia confirmed that payments in the Chinese yuan began in October, citing the change in settlement currency for mining-related levies.

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The move is the first recorded instance in Africa of companies paying government taxes in yuan rather than dollars. Officials say the change affects royalties and other tax payments from Chinese-operated mines.

Zambia now holds a portion of its reserves in foreign currencies with the yuan taking a growing share. The central bank report stated, “The Bank of Zambia has the diversification and building-up of its reserves as a key objective, and purchasing renminbi enables the bank to actualize this objective.”

The change follows broader trends of increased yuan use in Africa, supported by financing and infrastructure projects under the Belt and Road Initiative (BRI). Projects cited include seaports, airports, railroads, mining, and other infrastructure financed or built with Chinese involvement.

Observers note the development as part of a wider push by China to internationalize the renminbi beyond the BRICS alliance and to expand its role in global payments. The shift also adds competitive pressure to the U.S. dollar as a dominant settlement currency amid ongoing U.S.–China tensions involving President Donald Trump.

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