Zambia has scrapped its 15% export duty on precious stones and metals in a move to boost international trade and attract more investors to its mineral sector.
The decision aligns with the government’s broader efforts to diversify exports beyond traditional minerals and increase foreign earnings.
The Ministry of Finance and National Planning announced the policy change in a statement on its official X account on Tuesday.
According to the ministry, scrapping the levy will enhance the competitiveness of Zambian gemstones on the global market, driving higher sales volumes and stimulating economic growth.
“This measure will encourage greater investment in the exploration and extraction of precious stones and metals, reducing dependence on traditional mineral exports for foreign exchange,” the ministry stated.
Beyond increasing mineral production, the tax removal is expected to create a ripple effect across the economy, attracting both local and international investors to Zambia’s mining industry.
The government has pledged to closely monitor the impact of the policy using existing tracking tools to ensure it delivers the anticipated benefits.
Additionally, it reaffirmed its commitment to fostering sustainable growth, encouraging diversification within the mining sector, and supporting local businesses.
The mining industry has long been the cornerstone of Zambia’s economy, with copper production playing a dominant role. In 2023, the sector’s contribution to GDP rose to 13.7% from 12.9% in 2022. In the first quarter of 2024, mining accounted for 15.6% of Zambia’s total economic output.
A recent report ranked Zambia as the world’s ninth-largest copper producer in 2022, with reserves estimated at 21 million metric tons—6% of global copper reserves. However, copper production declined in 2023, with output falling by 7.9% to 698,566 tonnes, pushing Zambia to the 10th position globally.
The first quarter of 2024 showed signs of recovery, with copper production reaching 165,984 tonnes—an increase of 14.9% compared to the same period in 2023.
With the latest move Zambia seeks to reduce its heavy reliance on copper, its top foreign exchange earner, by expanding its mineral export base to include gold, silver, diamond, emerald and other gemstones.
