Zambia’s Emerald Mining Sector Faces Scrutiny: ESMAZ President Defends Tax Suspension Amid Corruption Claims
Victor Kalesha is the President of the Emerald and Semi-Precious Stones Mining Association of Zambia (ESMAZ). He has strongly responded to mounting criticism. He has called for a reality check on the challenges facing Zambia’s emerald mining sector. Accusations of corruption and policy mismanagement have arisen. Kalesha emphasized the industry’s high-risk nature. He defended the government’s suspension of the contentious 15% gemstone export tax.
Investor Exodus: Why Zambia’s Emerald Mines Struggle to Retain Backers
Kalesha highlighted the paradox of Zambia’s emerald mining potential. The country is globally renowned for its gemstones. Yet, the sector has seen a wave of investor withdrawals. Chinese firms, including those behind the Levy Mwanawasa Stadium, abandoned multimillion-dollar projects due to “unprofitable operations” and market uncertainties. “This is not a playground for the faint-hearted,” Kalesha stated. These companies are rare success stories. They are built on resilience and calculated risk-taking, similar to companies like Grizzly Mining and Kagem.
The 15% Tax Debate: PF Policy Reversal Sparks Controversy.
The suspension of the 15% gemstone export tax—introduced under the PF government in 2018/2019—has drawn fire from critics. Economic Freedom Fighters (EFF) Secretary-General Changala Siame is one such critic. He alleges corruption involving the Minister of Finance. Kalesha dismissed these claims, arguing the tax’s suspension safeguards Zambia’s competitiveness. “This decision ensures the sector continues contributing via mineral royalties, corporate tax, and presumptive tax.” He asserted this, urging critics to partner with license holders. They should “understand the industry’s complexities.”
Small-Scale Miners: Holding On Against the Odds
Though they face losses, many artisanal and small-scale miners (ASM) hold onto licenses. They are inspired by entrepreneurs like Grizzly’s proprietor. Kalesha warned that sustaining the 15% tax would cripple ASM livelihoods. He stressed that the levy applied broadly to gemstones beyond emeralds.
Call to Action: Police Probe Demanded Amid Corruption Allegations
ESMAZ has called for police investigations into Siame’s corruption claims. They are demanding evidence. Kalesha reiterated the need for informed dialogue: “Armchair critics undermine a sector vital to Zambia’s economy.”
Keywords:
Zambia emerald mining, 15% gemstone export tax, ESMAZ Zambia, Victor Kalesha, Kagem Mining, Grizzly Mining Zambia, Artisanal and Small-Scale Mining, mineral royalty Zambia, PF government tax policy, Economic Freedom Fighters Zambia
