Several African economies are seeking to reduce their exposure to the US dollar by expanding the use of the Chinese yuan and domestic currencies in trade, taxation and debt management. In an article published on August 6, 2026, The Economist examines this gradual monetary shift, with Zambia emerging as a leading example.

Zambia has begun accepting mining royalties and tax payments in yuan, a first on the continent. The move reflects the country’s close financial and commercial links with China, its main copper buyer and a major creditor. Authorities have also tightened rules requiring domestic payments to be made in kwacha, in an effort to reinforce the national currency.

Other countries are following different paths. Egypt, Nigeria and South Africa have strengthened currency-swap arrangements with China, while Kenya has converted part of its Chinese debt from dollars into yuan. The strategy is intended to limit exchange-rate risks and lower the cost of servicing external obligations.

The shift does not amount to a wholesale rejection of the dollar, which still dominates African debt and international trade. African governments are also promoting local-currency settlement mechanisms, notably through the Pan-African Payment and Settlement System. For businesses, however, the transition can create fresh costs, as contracts and supply arrangements previously tied to the dollar must be renegotiated.