Gemfields, a leading coloured gemstone producer, has called on the Zambian government to lift a newly reintroduced 15% export tax on emeralds.
The tax, which came into effect on January 1, 2025, follows its suspension in 2019. Zambia, the world’s second-largest emerald producer, re-imposed the levy amid concerns it could undermine the sector’s growth.
Gemfields expressed its intention to engage with the government to either reinstate the previous tax suspension or remove the export duty altogether. The company emphasized the potential negative effects on the sustainability of the emerald industry and its ability to attract investment.
The company operates Zambia’s Kagem emerald mine, one of the world’s largest, which contributes significantly to the country’s gemstone industry. Gemfields also owns the Fabergé jewellery brand and a ruby mine in Mozambique.
In 2023, Kagem paid 31% of its revenues in taxes, royalties, and dividends to the Zambian government. The company holds a 75% stake in the Kagem mine, while the Zambian government owns the remaining 25%.
Since 2009, Kagem has generated $1.1 billion in emerald sales, reflecting the mine’s substantial contribution to Zambia’s economy. Despite this, Gemfields warns that the new export tax could pose a serious threat to the future stability of the industry.
