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Zambia collects ¥1.3 billion Chinese Yuan in mining taxes
The Bank of Zambia (BoZ) has announced
Picture: Zambian Business Times
The Bank of Zambia (BoZ) has announced the successful collection of CNY ¥1.3 billion (approximately US$191 million) in mining taxes, following the adoption of a yuan-denominated tax payment system for Chinese mining companies operating in the country.
Speaking at a recent media briefing attended by the Zambian Business Times (ZBT), Dr. Emmanuel Mulenga Pamu, Director of Financial Markets at BoZ, confirmed the receipt of these funds since the system’s launch initiated in October 2025.
“In terms of Yuan the total is ¥1.3 billion, translating into $191 million following the implementation of a Chinese yuan-denominated tax payment system for Chinese mining companies.”
Under this arrangement, mining companies are required to pay 60% of their taxes in US dollars, 25% in Zambian kwacha, and 15% in Chinese yuan.
This move allows Zambia to hold yuan reserves, facilitating direct payments of bilateral loans owed to China and reducing costly currency conversion fees associated with U.S. dollar transactions. Additionally, accepting yuan from Chinese-owned mining firms eases local demand for U.S. dollars, thereby supporting the stability of Zambia’s foreign exchange reserves.
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The latest collection of ¥1.3 billion (US$191 million) marks a substantial increase from the CNY ¥317 million (US$46 million) reported in February 2026.
The introduction of accepting mining taxes in Chinese yuan is designed to reduce currency conversion costs, alleviate demand pressure on the US dollar, and enhance Zambia’s foreign exchange liquidity.
Authorities believe that by diversifying the currency composition of revenue inflows to include those used in trade and debt obligations, Zambia can better manage exchange rate volatility and external payment liabilities.
This positions the yuan as an increasingly significant component of Zambia’s fiscal receipts. The adoption of the yuan tax collection system represents a strategic policy shift by the Zambian government, aimed at strengthening economic relations with China, Zambia’s largest trading partner and a dominant force in its mining sector.
Article by Tyndale Muchiya
Source: Zambian Business Times — Read more
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