By Cecilia Chiluba/Zambia/Lusaka
Zambia’s Finance and National Planning Minister Situmbeko Musokotwane has described Government’s move to allow some mining companies to pay taxes in the Chinese currency, the Renminbi (Yuan), as a strategic policy aimed at strengthening the country’s foreign currency position.
Zambia has become the first African nation to accept payment of mine taxes and royalties using the Chinese Yuan currency as the country seeks to minimize reliance on the US dollar.
Speaking on the matter, Dr. Musokotwane explained that although taxes are ordinarily expected to be paid in the Zambian Kwacha, government has, for strategic reasons, previously prescribed payments in foreign currencies.
The Minister cited the 2018 decision by the Bank of Zambia (BoZ), with government support, which required mineral royalty taxes to be paid in U.S. dollars.
“This requirement was later extended in 2020 to cover all other taxes paid by mining companies,” he said.
The policy was introduced at a time when Zambia needed certainty of foreign currency inflows, given that the mining sector largely earns revenue in U.S. dollars.
Towards the end of 2025, government expanded this framework to allow mining taxes to also be paid in the Chinese Renminbi, a practice that has now been in effect for several months.
According to figures attributed to the Zambia Revenue Authority Commissioner General, in 2025, about 73 percent of mining taxes were paid in U.S. dollars, around 25 percent in Kwacha, and approximately 2 percent in Renminbi.
“Looking ahead to 2026, government expects a shift in the currency composition of mining tax payments, with about 60 percent projected to be paid in U.S. dollars, 25 percent in Kwacha, and 15 percent in the Chinese currency,” Dr. Situmbeko stated.
He emphasized that the decision to accept the Renminbi follows the same strategic logic that previously informed the move to prescribe U.S. dollar payments, stressing that it is intended to enhance financial stability and manage foreign exchange flows rather than replace the Kwacha as Zambia’s primary currency.
