Zambia’s Adoption of the Yuan for Taxes Signals China’s Growing Financial Influence in Africa

Zambia has begun accepting China’s yuan for the payment of mining taxes, becoming the first African country to formally allow the use of the Chinese currency in its extractive sector. The move underscores China’s growing financial influence across Africa’s strategic resource industries, particularly in copper-producing countries.

The Bank of Zambia is adjusting its reserve management strategy to reflect China’s position as Zambia’s largest copper trade partner and a major creditor. By accepting the yuan, Zambia aims to reduce foreign exchange risks and lower transaction costs associated with servicing Chinese-denominated debt.

The development highlights Beijing’s broader push to internationalise the yuan across Africa, while raising questions about shifting financial alignments and monetary dependence in resource-rich economies.