Government has defended the 15% waiver and expects positive outcomes to emerge from its removal a decision that was officially implemented a week ago to boost Zambia’s gemstone and precious metals sector. Finance and National Planning Minister Dr. Situmbeko Musokotwane reiterated that this policy shift is set to benefit more than 500 artisanal and small-scale miners, including women and youth, and to significantly enhance Zambia’s competitiveness in the global market.
Speaking at a press briefing in Lusaka, Dr. Musokotwane highlighted that the tax relief provides much-needed financial flexibility for local miners who have struggled with high operational costs and intense global competition. He emphasized that easing this export duty would boost cash flow and make Zambian gemstones and metals far more attractive to international buyers.
The removal of the export duty is anticipated to have a direct and lasting positive impact on the country’s mining sector, a key pillar of the national economy. Artisanal and small-scale miners often operating with limited resources are expected to benefit significantly from this measure. Among these are women and youth, who represent a considerable portion of the sector’s workforce.
Dr. Musokotwane underscored that eliminating the tax burden aligns with the government’s broader goal of empowering local miners and ensuring economic opportunities for all Zambians. He noted that by enabling miners to reinvest in their operations and expand production, the policy will ultimately contribute more robustly to the national economy.
Initially introduced as a revenue-generating measure, the 15% export duty had been widely criticized by industry stakeholders for making Zambian gemstones and metals less competitive on the global stage. International buyers often opted for suppliers in other countries with lower export costs, leading to a decline in sales for local miners.
By removing the duty, the government aims to position Zambia as a more attractive source of high-quality gemstones and metals. Dr. Musokotwane emphasized that this move not only promises to increase sales volumes but also to stimulate economic activity throughout the mining sector. He further noted that the duty had discouraged investment in the industry, limiting miners’ ability to expand their businesses. With the waiver in place, there is renewed optimism that investors will now view Zambia’s gemstone sector as a viable and profitable opportunity.
The decision has been widely welcomed by industry stakeholders, who see it as a breakthrough for small-scale miners. Grace Chanda, a miner and youth advocate, described the removal of the export duty as a victory for local miners, expressing optimism that improved market access will enable them to compete more effectively on the global stage.
As Zambia continues to strengthen its presence in the international mining industry, the removal of the 15% export duty is expected to drive long-term economic benefits. The policy shift not only improves the livelihoods of local miners but also attracts international buyers and investors, laying the groundwork for sustained growth.
Dr. Musokotwane reaffirmed the government’s commitment to ensuring that Zambia’s natural resources benefit its people. He stressed that the waiver is part of a broader strategy to promote inclusivity, enhance global competitiveness, and foster sustainable development in the mining sector.
With this bold move, Zambia is positioning itself as a key player in the global gemstone and precious metals trade, proving that its mineral wealth is not just a resource but a powerful catalyst for national economic transformation.
It smels of payola kickbacks. Have the previous tax rebates, exemptions and reliefs yielded anything good?
After five years firms change names or directors to evade tax. Sometimes they just wind-up and go elsewhere. At other times, they convert mineral royalties into dividends. We lose. Meanwhile we choose to be debters and refuse to generate our own riches. Shame. And shame to us.
When will we pay for the fuel indebtedness of half a million dollars? Kaya.
..we choose to be debtors..
..where do we find EASY money to pay for our OMC credit now running for five years? You haven’t fixed anything at all.
This is like reducing tax on commercial loans in agriculture and attributing the benefits to small scale farmers who cannot even access those loans even if they were less than a third in interest. The beneficiaries will certainly be the multinationals who usually buy mined gemstones from the so-called artisanal miners (also referred to as illegal miners when the political climate dictates it). So let’s stop bs-ing ourselves and just say there is a clandestine move going on. Put simply: How much revenue does government anticipate to lose from this move, and how much do they expect to gain? Figures please … these amorphous statements are not doing us any good.
This so-called new doom government is a fraud!! A regime full of white-collar criminals masquerading as politicians!
Levy Mwanawasa and his finance minister Mr Magande insisted on this tax( this is what made Anglo to abandon KCM)and I remember there was an economical boom during that time…..enter Rupiah Banda and his Dr Musokotwane the tax was removed….and the downward trend started.
How can we reduce tax on gemstones?
How can small miners benefit?
Then tomorrow we will run to IMF for bail out?
Let’s reap from our own minerals.
These morons will bring Zambia to its knees if it is not there already. In his defense, he has neglected to mention how much revenue will be lost as will be lost as a result has there another muzungu give away. How many Zambia women and youth are involved in gemstone mining. Are they not the same people he and his traveling boss calls illegal miners. These guys are there to impress themselves and foreign interest where HH got money during his 20 years stay in opposition. The only things HH knows is selling things. What did HH do during privatization. What did he do with the maize he with FRA. Zambians have just got themselves to blame.
What a joker.
The vast majority of exporting is not being done by women and youth. It’s primarily foreign owned entities.
UPND is more aligned with foreign interests than with the well being on the Zambian people.