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Government says its decision to allow some mining taxes to be paid in the Chinese currency, the Renminbi, is a strategic intervention aimed at improving debt management and reducing unnecessary foreign exchange conversion costs.
Finance and National Planning Minister, Situmbeko Musokotwane, said the development should not be interpreted as a shift away from the Zambian Kwacha, which remains the country’s primary legal tender for all domestic transactions.
Addressing the media on Tuesday in Lusaka, Musokotwane said the clarification follows widespread public and regional interest after reports indicated that Zambia had begun collecting mining taxes in Renminbi.
He explained that although taxes in Zambia were generally payable in Kwacha, government may occasionally designate alternative currencies for specific sectors in order to support macroeconomic stability.
Read more: Zambia becomes first African country to accept Chinese currency, Yuan, for mining taxes
He cited the 2018 decision—later expanded in 2020—which required mining companies to remit certain taxes in United States dollars.
According to Musokotwane, the same strategic reasoning now underpins the limited use of the Renminbi.
“In 2025, approximately 75 percent of mining taxes were paid in US dollars, about 25 percent in Kwacha, and around 2 percent in Renminbi. Looking ahead to 2026, Government expects about 60 percent to be paid in US dollars, 25 percent in Kwacha, and roughly 15 percent in Renminbi,” he said.
He noted that China remained Zambia’s largest bilateral creditor, with most loans contracted from China denominated in Renminbi rather than US dollars.
“When it is time to service that debt, repayment must be made in the same currency in which the loan was contracted. Allowing a portion of taxes to be paid in Renminbi helps Government avoid unnecessary currency conversion costs,” Musokotwane said.
He added that converting US dollars into Renminbi involved transaction fees and settlement delays—costs that government intends to minimise through this arrangement.
Musokotwane emphasised that the policy was limited in scope and currently applies only to a small number of mining companies with strong commercial ties to China. He stressed that it did not require all mining firms to pay taxes in Renminbi.
“This does not mean that every mining company is being required to pay taxes in Renminbi. That is not the case,” he said.
He further assured the public that the policy would have little to no direct impact on ordinary citizens.
“For the average Zambian, there will be no noticeable change. The savings Government makes through reduced transaction costs can be redirected towards public services such as health, education, and social protection,” Musokotwane said.
The Minister also noted that the Renminbi already formed part of Zambia’s foreign currency reserves and is included in the International Monetary Fund’s Special Drawing Rights basket.
He noted that managing foreign reserves always involved balancing risk, observing that no currency or asset is entirely risk-free.
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