By: Central news

As the world economy shifts towards new ways of doing business, Zambia has made a bold step that could change how Africa trades with its biggest partner.

On January 3, 2026, the Zambian government announced it would become the first African country to accept China’s currency, the Yuan, for the payment of mining taxes.

This decision opens doors for mining companies to pay in Yuan instead of U.S. dollars, a move that feels like a smart way to cut costs and strengthen ties with China for everyday Zambians who rely on the mining industry for jobs and growth.

For families in mining towns like Kitwe or Chingola, where copper digs provide work for thousands, this could mean steadier paychecks and less worry about currency ups and downs.

Zambia’s mining sector, which brings in 70% of the country’s export earnings, has long been tied to China – the world’s top copper buyer – but this tax change takes that partnership to a new level.

In a continent where dollar shortages often slow business, Zambia’s choice offers hope for easier dealings and more investment from Beijing.

As 2026 begins with global trade facing challenges like rising costs and supply issues, this historic first could inspire other African nations to follow, boosting economies hit hard by debt and low commodity prices.

With Zambia owing China around $6 billion from loans for roads and power plants, accepting Yuan for taxes could ease some pressure and open paths for fresh deals.

For small business owners or farmers who benefit from mining growth, this feels like a win that could bring more jobs and better lives in the years ahead.

This announcement comes after years of deepening Zambia-China ties, driven by massive investments in copper mines that power everything from electric cars to phones.

Let’s look closer at the details, economic benefits, and what it means for Africa in 2026.

The Announcement: A First for Africa in Currency Use

Zambia’s Finance Minister Situmbeko Musokotwane shared the news at a press briefing in Lusaka, saying mining firms can now pay taxes in Yuan starting from February 2026.

This makes Zambia the pioneer in Africa for using China’s currency in official payments, a step that cuts out the need for dollar conversions and saves on fees.

The move applies to all mining taxes, including royalties and corporate income tax, for companies dealing with Chinese buyers.

Zambia’s central bank will handle the Yuan payments, converting them to kwacha for government use.

This setup builds on a 2025 agreement with China to boost Yuan trade, part of broader efforts to reduce dollar dependence amid global shortages.

For mining giants like First Quantum Minerals or Kansanshi Mining – many with Chinese stakes – this simplifies operations and could attract more investment.

In 2025, Zambia produced over 800,000 tons of copper, with China taking 60 percent. Accepting Yuan aligns with this, making trade smoother and less costly.

Zambia-China Ties: A Partnership Built on Resources

China has been Zambia’s top investor since the 2000s, pouring over $25 billion into mines, roads, and power.

Major projects like the Kafue Gorge Lower Hydro Plant, finished in 2025 with $2 billion from China, power the nation’s growth. Chinese firms own stakes in key mines like Chambishi and Luanshya, employing 50,000 Zambians.

But ties bring challenges – debt to China hit $6 billion in 2025, about 20 percent of Zambia’s total.

A 2023 restructuring eased payments, but critics worry about over-reliance. The Yuan move could help by cutting currency risks and boosting trade, which hit $5 billion in 2025.

For Zambians, Chinese investments mean jobs but also concerns like poor labour conditions or environmental damage from mining. In 2025, protests at some mines led to better wages, showing the partnership’s evolving nature.

Economic Benefits: Cutting Costs and Boosting Growth

Accepting Yuan for taxes offers real wins. Mining firms save on conversion fees – up to 2 percent per transaction – adding up to millions yearly. It also cuts exposure to dollar fluctuations, stabilising revenues in a volatile market.

For Zambia’s economy, more Yuan use could attract Chinese buyers, boosting copper exports key to 70 percent of earnings. In 2025, low prices hit hard, but Yuan payments could hedge this.

Broader, it aligns with Africa’s shift from dollars – in 2025, Nigeria and Kenya started Yuan trades with China. This reduces reliance on the U.S. currency, easing shortages that delayed imports last year.

Global Context: Africa’s Growing Ties with China

Africa-China trade hit $300 billion in 2025, with Zambia a key player in minerals. China needs copper for EVs and tech, while Africa seeks investment.

But debt traps worry – Zambia’s 2023 restructure was Africa’s first under G20 frameworks.
The Yuan’s rise as a global currency – used in 3 percent of trades in 2025 – shows China’s push for influence.

For Africa, it means alternatives to dollars but risks if Yuan weakens.
In SA, with R500 billion trade with China in 2025, similar moves could follow, cutting costs for miners like Anglo American.

Reactions and Concerns: Praise and Caution

Zambian business groups welcome the move, saying it eases trade with China, their top partner. Miners like Vedanta praise it for efficiency. But opposition like the UPND warns of over-dependence, fearing currency risks.

Globally, analysts see it as China’s soft power win, with Yuan use growing 20 percent in Africa in 2025. For Zambia, it could cut debt pressure by paying in local currency.

Path Forward: Hopes for 2026 and Beyond

As the policy rolls out in February 2026, Zambia eyes more Yuan deals in other sectors like agriculture. Success could inspire neighbours, boosting regional trade.

For Africa, this historic first opens doors for economic independence. As Zambia leads, 2026 could see more nations embrace the Yuan, strengthening ties with China for mutual growth.

This move shows innovation in tough times. For Zambians, it means hope for steadier jobs and growth.