A positive development has emerged: parts of Zambia’s copper exports to China will begin using the renminbi for settlement starting next year. According to Bloomberg, Zambia is Africa’s second-largest producer and exporter of copper. During the International Monetary Fund (IMF) annual meeting in Bangkok on October 13, Bank of Zambia Governor Danny Kaya said this arrangement would initially be implemented among Chinese mining firms already using renminbi to pay taxes in Zambia.
This is not a sudden breakthrough, but rather the continuation of a process already underway—renminbi has gradually gained traction in African resource trade, now formally extending to copper export settlements with China. In fact, since October 2025, Zambian regulations have permitted Chinese mining companies to pay mining taxes and royalty fees in renminbi, and an official exchange rate between the renminbi and the kwacha has been published. This latest move effectively upgrades the existing “renminbi tax payment” system into full-scale “renminbi export settlement,” completing the loop from sales proceeds to local taxation.
Zambia is Africa’s second-largest copper producer, with the majority of its exports destined for China. Chinese mining firms operating in the country already generate substantial renminbi inflows. Previously, these funds had to be converted into dollars before repatriation; now, direct use of renminbi streamlines the process and reduces transaction costs. Moreover, Zambia holds significant debt obligations to China. Using renminbi to service these debts offers greater efficiency, as it avoids intermediate foreign exchange conversion losses.
Of course, Zambia also seeks to reduce its reliance on the U.S. dollar. The kwacha exhibits high volatility, making the economy vulnerable when the dollar strengthens. Holding renminbi as part of its foreign exchange reserves provides diversification and enhances resilience. This represents a genuinely market-driven form of renminbi internationalization—more sustainable than political rhetoric. The expansion of renminbi usage across Africa is not driven by pressure, but by real trade flows: Chinese demand for copper, Chinese mining operations, renminbi-denominated revenue, and renminbi-based tax payments. When this chain functions smoothly, the choice of settlement currency follows naturally.
Original source: toutiao.com/article/1879086628191424/
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