An assessment of the lapidary industry in Zambia
Date
2012-10-08
Authors
Simwanza, Zion Ephraim
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Zambia is one of the major gemstone producers of the world. The global value of rough Emerald production is estimated at US$1 billion a year. Available data indicate that Zambia accounts for about 20% of this value. Apart from emeralds, there are also several other important gemstones produced in Zambia. These include beryl, aquamarine, tourmaline, garnets, amethyst, citrine and rock crystal. Although the country is endowed with an abundance of these precious stones backed by a long history of gemstone mining, there has been no corresponding growth in downstream processing i.e. the lapidary industry. Zambia exports almost all of its gemstones as rough material. This obviously costs the country value-added earnings. The importing countries cut and polish gemstones and sometimes set them in jewellery, which they later re-export to major markets of the world under their respective national identities at a far higher value. Despite the national mining policy stressing downstream processing before export of any mineral commodity with penalties imposed for flouting, there has been laxity in its application to gemstones. Paradoxically, rough gemstones have even been granted a Non-Traditional export Status although they do not enjoy the 15% income tax, which the members of this category normally pay.Given the significant economic potential of setting up a lapidary industry, this study provides a major attempt at investigating problems (constraints) that have adversely affected the development of the sector. Included in the study are issues, affecting production (i.e. supply) as well as marketing constraints. Finally based on the findings of the study, recommendations are proposed.
Description
Keywords
Precious stones -- production -- Zambia