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The Private Sector Development Association (PSDA) has accused the government of bowing to pressure from foreign investors by suspending the 15 percent export duty on gemstones and precious metals.
The duty, which was reinstated on January 1, 2025, was scrapped on Tuesday following resistance from investors who reportedly threatened to halt operations and exports.
PSDA Chairperson, Yusuf Dodia, criticized the decision, arguing that it underscores Zambia’s economic dependence on large foreign investors, particularly in the mining sector.
“This decision highlights a bigger challenge—foreign investors appear to dictate government policies. This is especially evident in the mining industry,” Dodia said in a telephone interview.
He urged the government to empower local investors to take a dominant role in the sector, as they were more likely to comply with tax policies.
Dodia also questioned whether foreign investors were fully declaring their export earnings, despite their influence over government decisions.
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