2026-01-01 16:41
publication
2026-01-01 16:41
Zambia has become the first African country to formally adopt the Chinese yuan as the currency used to pay taxes and licenses for the extraction of minerals, primarily copper, of which it is one of the world's largest producers, Bloomberg reported.
According to Bloomberg, this proves the growing role of China as Zambia's largest copper buyer and its largest creditor. The South African country is in debt to China for USD 5.7 billion.
The Bank of Zambia explained to the agency on Wednesday that having the yuan significantly reduces the costs of servicing this debt. For this reason, the bank started publishing the official yuan to Zambian kwacha exchange rate in November.
Zambia is not the only country in Africa dependent on China. In October, Kenya converted part of its Chinese debt into yuan to ease the burden on its $5 billion debt budget. He hopes that this will save him approximately USD 250 million per year. Ethiopia has similar plans and has just started talks with Beijing on this matter.
China is the largest trading partner and creditor of African countries, as well as an important source of infrastructure investments: from roads, industrial plants, ports, airports, to schools, cinemas and restaurants.
Typically, Beijing seeks to control export markets and natural resources – not only minerals, but also arable land, the produce of which is sold by Chinese farmers working in Africa in local markets, displacing local traders, or sent back to their homeland.
Chinese investments are often accompanied by the exploitation and disregard of local workers, violations of human rights, corruption and driving the hosts into debt. Zambia has experienced all this in the past quarter of a century.
Tadeusz Brzozowski (PAP)
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