【By Guan察者网, Yuan Jiaqi】

The momentum of the internationalization of the Chinese yuan in Africa is becoming increasingly evident. According to a report by U.S. media Bloomberg on December 31, in Zambia, the second-largest copper-producing country in Africa, Chinese mining operators have begun using the Chinese yuan to pay for mining usage fees and taxes. The Bank of Zambia (BoZ) confirmed in an email response that the yuan settlement payment model was officially implemented in October.

The report pointed out that Zambia has become the first country in Africa to confirm accepting payments in Chinese yuan for mining taxes, which is the latest evidence of the growing acceptance of the yuan across the African continent. "Africa is gradually becoming a key arena for advancing the internationalization of the Chinese yuan."

Zambia Branch of the Bank of Zambia, Bloomberg

The email content cited by the U.S. media stated, "Most of Zambia's copper exports are destined for China, and some or even all of the proceeds from Chinese enterprises' exports to China are already settled in the Chinese yuan. One of the core objectives of the Bank of Zambia is to diversify its foreign exchange reserves and expand its reserve size. Increasing the holding of yuan assets helps achieve this goal."

The bank also said that allocating part of its foreign exchange reserves into yuan assets can help the country repay its debt to China in a more cost-effective way.

According to the report, the Bank of Zambia first introduced regulations in 2018 requiring mining companies to sell dollars to it for paying mining usage fees. In 2020, the country further expanded the scope of the policy, incorporating all mining tax payments into this settlement system. At that time, Zambia was struggling with rising foreign debt, and this measure was one of the important steps to replenish the government's dollar reserves.

Now, the policy has been further optimized, allowing mining companies to choose independently whether to sell dollars or the Chinese yuan to the Bank of Zambia for tax payments. To support this policy adjustment, the bank has started publishing the official exchange rate between the yuan and the Zambian kwacha this month.

Joseph Jalasi, senior partner at Dentons Zambia, a leading law firm, analyzed that "whether the yuan is actually accepted by the market will depend on the Bank of Zambia's reserve management policies, pricing mechanisms, and market operations guidance."

According to a previous report by Xinhua News Agency, in May 2025, the China Bank of Zambia (referred to as "ZamChina Bank") held a promotion event for the internationalization of the yuan in Lusaka, the capital of Zambia. This bank, established in 1997, is the first commercial bank set up by China in Africa. In 2015, it was designated by the People's Bank of China and the Bank of Zambia as the yuan clearing bank in Zambia.

At the event, Liness Mambwe, head of the regulatory department of the Bank of Zambia, highly praised the China Bank for promoting the use and development of the yuan in Zambia, which not only promotes local financial market development but also provides financial support for Sino-Zambian trade and economic cooperation.

Li Jun, economic and commercial counselor at the Chinese Embassy in Zambia, also stated in his speech that China and Zambia have closely cooperated under the framework of the Belt and Road Initiative and the Forum on China-Africa Cooperation, carrying out extensive, multi-level, practical, and innovative comprehensive cooperation. China has consistently ranked among the major sources of investment in Zambia, which is inseparable from the support of Sino-Zambian financial cooperation. Promoting the use of the yuan in Zambia has important functions such as avoiding exchange rate fluctuation risks, helping enterprises improve efficiency, and deepening strategic alignment.

Interestingly, the trend of the internationalization of the Chinese yuan in Africa has also been corroborated by more financial institutions. In the same month, Guo Mingzhen, head of multiple industries at Standard Bank Group, one of the largest commercial banks in Africa with headquarters in Cape Town, South Africa, told Beijing Daily in an exclusive interview that the trend of the internationalization of the Chinese yuan in Africa is becoming increasingly evident. Data from 2024 showed that the bank had facilitated about 42% of RMB settlements between China and Africa, although liquidity was relatively limited.

Guo Mingzhen said that currently, the international financial system is dominated by the U.S. dollar, which makes some African countries vulnerable to significant shocks in terms of economic security, such as facing difficulties when subjected to sanctions. However, if currency reserves are diversified, the impact would be significantly reduced.

"From a technical perspective, the Cross-Border Interbank Payment System (CIPS), led by China, is being promoted. Enterprises using CIPS can reduce their dependence on the Society for Worldwide Interbank Financial Telecommunication (SWIFT), effectively reducing systemic risks. Compared to the SWIFT clearing system, the use of CIPS is not directly affected by the policies of other countries, providing a more stable and secure environment for trade and investment between China and Africa," he added.

He also pointed out that with the continuous growth of Sino-African trade and investment in Africa, the sources of the yuan are increasing, and access channels are becoming more convenient, with the usage scenarios expanding continuously. Currently, the yuan is in a low-interest environment, and yuan financing shows significant cost advantages compared to dollar financing. For Chinese enterprises, using the yuan for settlement brings many benefits, including avoiding exchange rate fluctuation risks and enjoying the advantages of low interest rates; while for African companies facing foreign exchange shortages, the yuan further broadens the channels for foreign exchange sources.

This article is an exclusive piece by Guan察者网. Unauthorized reproduction is prohibited.

Original: toutiao.com/article/7590239218383749695/

Statement: This article represents the personal views of the author.