The Institute of Finance and Economics of Zambia has said that the auctioning of emerald in the country is good for taxing purposes.
Speaking to Qfm in an interview, Institute president Caleb Fundanga said that when emeralds are sold in the country; it brings buyers to Zambia and makes taxing easy and proper value realization.
Dr. Fundanga added that when emeralds are sold in Zambia, the origin is known and brings appreciation that Zambia produces high quality emeralds unlike a situation were they are sold outside the country.
He further stated that many of the people who come to buy these emeralds are big players in the industry and when they come to Zambia they bring in foreign exchange and might consider even investing and producing the emeralds themselves in the country.
Dr. Fundanga said that with the auctioning of emeralds in the country, even Zambians who do not know what the country produces are able to know something which would generate some interest in polishing them locally thereby earning the country more money.
He further stated that the hope is that emeralds that were leaving the country quietly can be sold openly and taxed accordingly so that the country’s economy continues to grow.
Meanwhile, Mines and Water Development Minister Christopher Yaluma has commended Gemfields plc and Kagem Mining Limited for putting up a successful and high-quality emerald auction held in Lusaka this week.
Mr. Yaluma said the fact that the auction had attracted buyers from all over the world is a clear indication that Zambian emeralds are among the best in the world.
Speaking in Lusaka yesterday during the close of the five day event, Mr Yaluma said the successful hosting of the event is testimony that the business environment in Zambia is conducive for such business events of a huge magnitude.
This was contained in a statement to ZANIS by Langmead and Baker limited Managing Director Gillian Langmead.
“Government regards Kagem as a flagship company in the Zambian gemstone sector and as such hopes that together with Gemfields we can build an enabling environment for the continued growth of the industry,” Mr Yaluma added.
According to the statement , Mr Yaluma stressed government’s commitment to developing the gemstone sector in the country as a major contributor to economic development through the generation of tax revenue, employment and poverty alleviation.
And Kagem chairman William Nyirenda, State Counsel, thanked the buyers, participants and the government for their support .
Mr Nyirenda also urged the participants to explore Zambian tourism during their stay in the country.
Mr. Nyirenda said several senior dignitaries attended the auction, including Vice President Guy Scott, First Lady Christine Kaseba-Sata and the Bank of Zambia Governor Michael Gondwe, who all expressed satisfaction with the event.
He stated that Gemfields operates the Kagem emerald mine in Lufwanyama in which the Zambian government holds 25 percent shares.
He disclosed that all the emeralds on offer at the auction were mined at Kagem mine in Lufwanyama which is the single largest producing emerald mine in the world.
“Gemfields and Kagem are at the forefront of developing the international market for Zambian emeralds by investing in sales and marketing in order to develop a competitive, reliable and trusted source of ethically produced gemstones that buyers can trust”, Mr Nyirenda said.
The auction which opened in Lusaka on Monday attracted 40 local and international gemstone buyers, appraising 18 lots of Kagem emeralds before submitting their sealed bids on Friday afternoon.
The winning bidders were also announced at the closing ceremony.
ZANIS
One positive and practical move by the PF in this area…counting as the clock ticks
Agree with you this is positive, the next step is prudent management of the money collected through such processes of widening the tax base.
PF 5: Investors 0. Well done PF and keep it up. Also don’t ever think of reversing the decision regarding removal of maize and fuel subsides which HH is against. It is a good move. People will see +ve results later. Uwakwensha ubushiku, bamutasha ilyo bwacha. come 2016 HH will die of Hypertension.
Great act by PF Govt here. We should do something about reining copper proceeds and foreign-based tour operators where payments are done in foreign banks. ST Yamba and Dr. Gondwe, please put your heads together and see how you can compel all foreign-based buyers of copper and tours to make payments in banks domiciled in Zambia for accounting and tax purposes. When it comes to this, we are with PF. The measures should not result in a “zero sum game” but be mutually beneficial. Foreign investors risk their money to invest here after we have invited them. We cannot behave like crooks who would trick them to come and then refuse them to earn their profits. Thank God, kaponyas have no hand here. Yo time is short even at markets and bus stops.
Were does Grizzly mine for Abdoulaye Ndiaye AKA Gunasi sell their Emeralds? because Kagem/Gemfields does not exist alone in the Emerald sector.
including the other small-scale miners? Is there a new regulation compelling all gemstone mining firms to sell locally or its just aimed at Kagem due to govt’s 25% stake? Is govt compelling Kagem to this local selling so as to maximize its earnings (multi-stage taxing: transaction, exporting etc) ? Can we have a microscope and flood light over the bidding process because I believe this is where the game begins!
Yes we need to be holistic and include all players in the sector so that we can maximise the gains and get more facts that will help us to fully plan for sector’s role in the whole economy. Going for Gemfields alone appears to be piece meal as other players’ contribution or potential contribution will remain difficult to establish. Let everybody play ball!! For this success,well done and keep it up!
Theoretist read this: In April, the Zambian government issued a directive for the colored gemstone mining, distribution and marketing company to hold its auctions within the country’s borders. The government said the directive is designed to promote transparency and accountability in the marketing of emeralds, stimulate local demand for emeralds, create more opportunities for small-scale miners to have access to colored gemstone markets, and increase tourism.
This means that small scale miners are supposed to sell at the auction.
Spot on Caleb Fundanga….. And Gemfields was crying wolf a few months ago…it just goes to show you that these investors only care about their bottom line and not our well-being. We should have done the same with windfall tax on copper mining.
Yes PF has scored on that front. Well done. I wish they were this serious with other areas of governance. Zambia would have been a shining example.
Nimubwatofye through out!! Good move PF, come 2016 you have my vote.
Good PF on this one particular issue.
Governance record needs working on. Democracy must be allowed to grow so that Zambians do not have to resort to primitive methods of removing failing political parties and their leaders from state control.
Excellent observation Caleb.Happy with mature contribution on this topic from all first 8 bloggers.Like this Zambia can grow.