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Calls for the removal of the recently reinstated 15 percent export duty on emeralds have intensified, with stakeholders urging the government to reconsider its decision due to the potential negative impact on Zambia’s mining sector.
The Federation of Small-Scale Mining Associations of Zambia (FSSMAZ) has joined industry leaders in opposing the duty, citing concerns over investor confidence, reduced production, and job losses.
FSSMAZ president, Joseph Mwansa, in a telephone interview with Zambia Monitor on Monday, described the tax as a deterrent to investment, warning that Zambia risks being labeled as Africa’s most taxed nation.
“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,” Mwansa said.
Read more: Presidential aide, Kayumba, says govt considering withdrawing 15% export duty on emeralds
He urged President Hakainde Hichilema to intervene, emphasising that the tax would adversely affect small-scale miners and undermine government revenue in the long term.
Mwansa also highlighted the financial burden on miners preparing for the Tucson exhibition in the United States, outlining that the combined cost of mineral royalty (six percent), presumptive tax (four percent), and export duty (15 percent) totals 25 percent, excluding operational expenses.
“We cannot build the sector with such high fees. Maintaining these rates will stifle the emerald industry and hinder the country’s economic growth target of 4.5 percent,” he added.
The 15 percent export duty was reintroduced through Statutory Instrument No. 88 of 2024, effective January 1, 2025, ending a suspension that had been in place since 2019.
Recently, Zambia Monitor reported that Gemfields, the majority owner of Kagem Mining Limited, had also criticised the government’s decision, citing a lack of prior notice or consultation.
The Emerald Production Watch of Zambia (EPWOZ) and the National Union of Miners and Allied Workers (NUMAW) expressed similar concerns, warning that the sudden imposition of the duty could destabilize the sector.
Stakeholders continue to call on the government to engage with industry players and review the export duty to ensure the long-term sustainability and competitiveness of Zambia’s emerald industry.
Recently, Jito Kayumba, Special Assistant to the President on Finance and Investments, indicated that the government was likely to suspend the 15 percent export duty.
“Zambia is likely to suspend a decision to reintroduce a 15 percent tax on exports of precious gemstones, including emeralds,” Kayumba stated during a panel discussion titled “Country Showcase – Zambia” at the Future Minerals Forum 2025 in Riyadh, Saudi Arabia.
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