In a move to allow local producers compete more effectively during auctions and sales on the global market, Zambia through its Finance and National Planning Minister, Dr. Situmbeko Musokotwane, MP, has today suspended export duty on precious stones and metals from 15 per cent to free.
“In view of the foregoing measure, Zambian precious stones and metals will now be priced more competitively on the global market, thereby attracting more interest from international buyers and leading to higher sales volumes and increased economic activity in the sector,” said the minister in a statement issued by Felix Nkulukusa, Secretary to the Treasury.
The southern African country, the world’s second largest emerald producer after Colombia, reintroduced the tax in January 2025 after it was suspended in 2019.
The latest measure will also encourage increased investment in the exploration and extraction of precious stones and minerals- moving beyond the reliance on traditional mineral exports for foreign exchange earnings.
Sector players concern
In January, Gemfields, which operates the Kagem emerald mine, one of the biggest in the world, warned that the export tax would hurt Zambia’s gemstone sector and asked the government to remove it.
On Wednesday, Gemfields CEO Sean Gilbertson said the Zambian government’s “decisive action” on the export tax would set the industry “back on track”.
Kagem, which accounts for about 25% supply of global rough emeralds, produced about 10 million carats of emeralds and about 30 million carats of beryl in 2024.
Boosting mineral production
According to Musokotwane, the new tax initiative will boost the overall mineral production and ultimately increase the country’s foreign exchange earnings through diversified earnings.
“This suspension is expected to have a positive ripple effect throughout the economy attracting both local and international investors to our mining industry,” said Musokotwane.
Additionally, the government has pledged to strictly monitor the impact of the measure through existing monitoring tools to ensure that the anticipated benefits accrue to the country.
“The nation may also rest assured that we remain committed to the implementation of policies that support sustainable growth, diversification within the mining sector and the wellbeing of the local business establishments in the broader Zambian economy.”
