By Jane Chanda
Gemfields, a leading coloured gemstone producer, has urged the Zambian government to reconsider the recently reinstated 15 percent export tax on emeralds, citing concerns that it may harm the sector’s sustainability and deter investment.
The tax, which was suspended in 2019, was reintroduced on January 1, 2025, and Gemfields has expressed its intention to engage with the government to either reinstate the suspension or remove the export duty altogether.
According to clubofmozambique.com, the company stated that it would feel the effects of the tax acutely, as it operated the Kagem emerald mine in Zambia, one of the largest in the world.
The statement showed that the mine generated $1.1 billion in emerald sales revenue between 2009 and 2023, making it a significant contributor to Zambia’s gemstone industry with Gemfields owning 75 percent of Kagem, while the Zambian government held the remaining 25 percent.
The company added that the reintroduction of the export tax raised concerns about the competitiveness of Zambian emerald producers.
Gemfields noted that the tax would increase the effective tax rate on revenues to 21 percent, making it challenging for the company to operate profitably in contrast, emerald producers in Brazil and Colombia faced significantly lower tax rates, of 2 percent and 2.5 percent respectively.
The company further emphasised the importance of engaging with the Zambian government to find a solution that benefited both the industry and the government.
“The company will engage with the Zambian government to seek the re-introduction of the suspension of this export duty or to remove it from the legislation given the impact on sector sustainability and investment attractiveness,” the company stated.
Gemfields stated that the Kagem mine had a significant impact on the local economy, and any disruptions to its operations could have far-reaching consequences.
The company also expressed concerns about the broader implications for the Zambian gemstone industry, stating that with the tax in place, emerald producers may struggle to compete with their international counterparts, potentially leading to a decline in investment and production.
