Gemfields, one of the world’s leading producers of coloured gemstones, has called on the Zambian government to revoke the recently reintroduced 15% export tax on emeralds, warning that the levy could significantly harm the country’s thriving emerald sector. Zambia, the world’s second-largest emerald producer after Colombia, reinstated the tax on January 1, following its suspension in 2019.
The company, which operates the Kagem emerald mine—one of the largest of its kind globally—expressed its concern that the tax would undermine the sustainability of the industry and diminish its appeal to foreign investors. In a statement, Gemfields indicated that it plans to engage with the Zambian government to seek either the reintroduction of the previous suspension or the outright removal of the export duty.
“Given the potential impact on sector growth and the country’s attractiveness to investors, we are engaging with the Zambian authorities to address this issue,” Gemfields said. The company emphasized that the removal of the export tax was crucial for preserving Zambia’s competitive edge in the global emerald market.
Gemfields, which also owns the Fabergé jewellery brand and a ruby mine in Mozambique, has been a major player in Zambia’s gemstone industry. In 2023, the Kagem mine paid approximately 31% of its revenues to the Zambian government in mineral royalties, taxes, and dividends. Gemfields holds a 75% stake in Kagem, with the Zambian government owning the remaining 25%.
Since its establishment in 2009, the Kagem mine has generated more than $1.1 billion in emerald sales revenue, solidifying its position as a cornerstone of Zambia’s mining sector. However, the reimposition of the export tax raises questions about the long-term prospects of the industry, with Gemfields warning that the tax could stifle growth and deter much-needed investment.
As Zambia faces increasing competition from other emerald-producing countries, the government’s tax policies will play a critical role in determining the future of the country’s gemstone sector and its ability to maintain its place as a global leader in emerald production.