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Zambia could be losing out on billions of dollars in potential economic value from gold exports, with the United Arab Emirates recording nearly US$1.8 billion in gold imports from the country in 2023, against formal domestic gold production of about 127,000 ounces last year.
ZCCM Investments Holdings Plc (ZCCM-IH) says the disparity highlights the potential benefits of formalising the gold trade to ensure more value is retained within the domestic economy.
ZCCM-IH Board Chairperson, Phesto Musonda, highlighted the figures at the recent Financial Times Africa Summit in London, United Kingdom.
According to a press statement issued on Thursday, Musonda spoke during a panel discussion on gold, sovereignty and stability, following his participation in the Financial Times Metals and Mining Conference the previous week.
“Last year, Zambia’s formal gold output was about 127,000 ounces, but the potential is far greater. In 2023 alone, the UAE recorded nearly 1.8 billion US dollars of gold imports from Zambia. That is the opportunity in front of us: bringing that value into the formal economy so that it is captured at home, for Zambia,” he said.
Musonda said the Government had mandated ZCCM-IH to lead efforts to formalise the gold trade.
He said through its subsidiary, Kyalo Goldfields, ZCCM-IH would purchase gold from licensed small-scale miners and supply it to the Bank of Zambia to build the country’s reserves, with payments made in kwacha.
“We are building a traceable chain, from the pit to the vault. Lifting formal output to several hundred thousand ounces a year is achievable,” Musonda said.
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He said Zambia, under President Hakainde Hichilema’s leadership, was sending a clear message to the international community that it was open for business and committed to stability, transparency and partnership.
“Investors are looking for predictable policy and credible institutions. Zambia is offering both, and ZCCM-IH stands ready as the State’s partner of choice to help them grow with us,” Musonda said.
He said the programme was designed to give small-scale miners a legitimate and transparent route to market while strengthening national reserves and improving traceability for international buyers and investors.
Musonda said every ounce of gold entering the formal supply chain represented value that remained in Zambia and benefited its people.
“That is one of the opportunities we came to London to advance, and we leave confident that the right partners are ready to seize it with us,” he said.
Musonda told the summit that the gold programme formed part of a broader national effort under President Hichilema and the Grow Zambia Agenda to position the country as one of Africa’s most attractive destinations for responsible mining and energy investment.
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