Government to Accept Chinese Currency for Mining Taxes

Government has introduced a new system allowing some mining companies to pay part of their taxes in Chinese Renminbi (RMB) instead of only US dollars.

Finance and National Planning Minister Situmbeko Musokotwane announced that whilst 73% of mining taxes will still be paid in US dollars, four companies will take part in a trial programme to pay some taxes in RMB.

Speaking at a press briefing in Lusaka, Dr Musokotwane said the decision makes financial sense for Zambia.

"We owe significant debt to China. By accepting RMB directly, we can avoid the costs of converting currency," he explained.

The minister described the arrangement as a pilot programme that could help the country manage its Chinese debt more efficiently.