Zambia has become the first African country to officially accept yuan for mining-tax payments, with Chinese operators in the copper sector beginning to pay royalties and taxes in the currency in October, the Bank of Zambia confirmed.

Bloomberg reported that the policy allows the central bank to diversify its foreign-currency reserves while enabling more cost-effective repayment of debts owed to China. “A large portion of copper exports go to China and the Chinese mining firms already receive some, if not all, of their payments for their exports in renminbi,” the bank said.

Mine operators can now choose to sell either dollars or yuan to the central bank to settle tax obligations. To facilitate the transition, the Bank of Zambia last month published the official renminbi–kwacha exchange rate, providing clarity for market participants.

The move builds on earlier reserve-management policies. Regulations introduced in 2018 required miners to sell dollars to pay royalties, expanded in 2020 to cover all mining-tax payments. These measures were part of a broader strategy to strengthen Zambia’s dollar reserves amid rising external debt.

Observers say Zambia’s acceptance of the yuan reflects a growing trend across the continent. Kenya this year converted dollar loans from China into yuan-denominated debt, while Ethiopia has initiated discussions on similar arrangements. Analysts see these shifts as part of Beijing’s broader push to internationalise its currency in countries heavily exposed to Chinese financing.

The copper sector in Zambia remains dominated by Canadian firms, with First Quantum Minerals Ltd. and Barrick Mining Corp. producing roughly two-thirds of output in 2024. Meanwhile, Chinese operators, including China Nonferrous Mining Corp. Ltd., are investing billions to expand production as copper posts its largest annual price gain since 2009.

Joseph Jalasi, senior partner at Dentons’ local unit, noted that the practical adoption of renminbi will depend on central-bank reserve management, pricing mechanisms, and operational guidance. “The acceptance of renminbi is as much about policy framework as it is about market readiness,” he told Bloomberg.