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The Zambian government has suspended the 15 percent export duty on precious stones and metals to enhance the competitiveness of local producers in global auctions and sales.
The decision followed Gemfields, the majority owner of Kagem Mining Limited, reportedly suspending emerald sales after Zambia reinstated the export tax, which was set to take effect on January 1, 2025.
Zambia, the world’s second-largest emerald producer after Colombia, first imposed the 15 percent export duty in 2019 but scrapped it a year later following industry pressure.
The government reinstated the tax this year without prior consultation, drawing sharp criticism from Gemfields.
Secretary to the Treasury, Felix Nkulukusa, announced the suspension in a statement issued in Lusaka on Tuesday, saying it would make Zambian precious stones and metals more competitive internationally.
“This move is expected to attract greater interest from international buyers, leading to higher sales volumes and increased economic activity in the sector,” he said.
The government hopes the measure will encourage further investment in exploration and extraction, diversifying Zambia’s mineral exports beyond traditional commodities.
“The initiative will boost overall mineral production and ultimately increase the country’s foreign exchange earnings through diversified exports,” Nkulukusa added.
The Federation of Small-Scale Mining Associations of Zambia (FSSMAZ) also opposed the tax, warning it could damage investor confidence, reduce production, and lead to job losses.
FSSMAZ president Joseph Mwansa described the levy as a deterrent to investment, saying: “The lack of consultation and research on the impact of this tax hike is concerning. Without thorough analysis of international best practices, this move will discourage investors, increase prices, and make Zambian emeralds uncompetitive in the global market.”
Nkulukusa noted that the government will monitor the impact of the suspension to ensure the anticipated benefits materialize.
The suspension followed the issuance of Statutory Instrument No. 4 of 2025 by Finance and National Planning Minister Dr. Situmbeko Musokotwane, effectively removing the 15 percent duty.
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