By Ellen Hambuba
Government has announced a change in the way mining companies will pay taxes, allowing firms to remit part of their tax obligations in Chinese currency, the Renminbi -RMB, alongside the US dollar.
Finance and National Planning Minister SITUMBEKO MUSOKOTWANE says while 73 percent of mining taxes will continue to be paid in US dollars, a pilot programme now permits four mining companies to make payments in RMB.
Speaking at a press briefing in Lusaka, Dr. MUSOKOTWANE said the move is strategic, noting that Zambia holds significant debt to China and that accepting RMB will reduce currency conversion costs.
He added that the arrangement is also expected to ease pressure on the foreign exchange market.
Dr. MUSOKOTWANE clarified that the acceptance of mine tax payments in RMB does not signal a move away from the Kwacha, stating that all domestic transactions will remain conducted in the local currency.
Meanwhile, Bank of Zambia Governor DENNY KALYALYA said Chinese-owned mining companies began paying their mining taxes in RMB in October 2025.
Dr. KALYALYA attributed the development to several factors, including the fact that a large share of Zambia’s copper exports is destined for China, with some Chinese mining firms already receiving part of their export earnings in RMB.
He added that the initiative supports the Bank of Zambia’s goal of diversifying and strengthening foreign exchange reserves, while enabling the country to service Chinese-denominated debt more efficiently.
