By Jane Chanda
Action Institute for Policy Analysis Centre (AIPAC) executive director Solomon Ngoma, has opposed the Ministry of Finance’s decision to suspend export duty on precious stones and metals, citing lack of consultation and potential dire consequences.
On Tuesday, Secretary to the Treasury Felix Nkulukusa announced the suspension of the export duty on precious stones and metal from 15 percent to zero (free), in a bid to allow local producers to compete more effectively during auctions and sales on the global market, the decision, made through Statutory Instrument No. 4 of 2025.
In an interview with Daily Revelation yesterday, Ngoma argued that the decision could lead to significant revenue loss and undermine the country’s economic stability.
He said the move lacked adequate consultation with stakeholders, including civil society organisations and industry experts and advised the ministry to rescind its decision and adopt a more consultative approach.
He said even though the suspension of export duty was intended to benefit local producers, it raised concerns about the potential long-term effects.
Ngoma said as Zambia navigated economic challenges, careful consideration and stakeholder engagement were crucial, particularly in light of the controversy surrounding the decision to suspend export duty on precious stones and metals.
“The move lacked adequate consultation and could lead to dire consequences for the country,” Ngoma warned.
He emphasised the need for transparency and accountability in policy decisions.
And economist Dr. John Musantu said the government’s suspension lacked transparency and could have dire consequences for the country’s revenue.
Dr. Musantu emphasised that policy pronouncements affecting national revenue should be accompanied by detailed analysis, including projected revenue losses and simulated gains.
He noted that the government’s decision seemed drastic, and stakeholders should be provided with clear figures to understand the implications.
“For policy pronouncements that have to do with national revenue, it would be best for the government to put the figures down in their analysis,” he said.
The economist also questioned the government’s reasoning for suspending the export duty, citing the argument that “Zambians in the sector made an appeal” as unconvincing.
Dr. Musantu emphasised that given the country’s tight fiscal space, decisions should be made with utmost consideration, and policy direction should be responsive to changing environments while being logical, consistent and unbiased.
The economist further warned that the government’s decision could jeopardize its target of achieving 21 per cent of GDP (Gross Domestic Product) in domestic revenue, a goal he describes as “highly commendable.”
He called for careful consideration and stakeholder engagement in policy decisions, particularly those affecting national revenue.
“To grow our economy, everyone will have to come to the party and contribute their fair share,” Dr. Musantu said.
He also stressed the need to support the Bank of Zambia (BoZ) in fully operationalising the Export Proceeds Tracking Framework, which he believed had the potential to be a game-changer in maximising the role of the mining sector in the economy.
