ZAMBIA GOLD
Zambia plans to halve the tax that small-scale gold miners pay to the state, from 6% to 3% of the value of the gold they sell. The cut, announced in the 2027 national budget on Friday 6 November 2026, applies only to gold sold to government-approved buyers.
Dr Situmbeko Musokotwane, the Minister of Finance and National Planning, presented the measure to parliament, the National Assembly. It is a proposal until the assembly passes it, and the budget’s tax measures are intended to start on 1 January 2027.
Key Facts
- What: Zambia proposes cutting the gold royalty for small miners from 6% to 3%.
- Condition: The lower rate applies only to gold sold to government-approved buyers, called aggregators.
- Who: Finance minister Dr Situmbeko Musokotwane presented the 2027 budget to parliament on 6 November 2026.
- Reaction: The Federation of Small-Scale Mining Associations, a small-miners’ group, welcomed the cut.
- Not known: How much gold small miners now sell through approved buyers, and how many buyers will operate.
Zambia is better known in the United States for copper, but this budget line targets gold dug by small producers. The government wants to bring them into legal sales channels.
What the Budget Changes for Gold
A mineral royalty is a payment to the state, set as a share of the value of what is mined. For artisanal and small-scale gold miners, meaning people who dig by hand or with simple equipment, the rate would fall to 3% from 6%.
The cut is conditional: it covers only gold sold to approved aggregators. Miners who sell to anyone else would not get the lower rate.
In Plain English
- A royalty is a share of the value of mined gold paid to the government.
- An aggregator is a government-approved buyer that gathers gold from small producers.
- Artisanal and small-scale miners work with hand tools or simple equipment, often without large companies behind them.
How Small-Scale Miners Reacted
The federation, which represents small-scale mining groups, welcomed the change. Its president, Joseph Mwansa, said the cut will encourage small-scale miners to sell their gold through legal channels.
The Zambia Revenue Authority, the national tax collector, says in its summary of the budget that the measure is meant to promote participation in the formal gold value chain and to support the growth of the small-scale gold subsector. It sets no target for how much gold should move to approved buyers.
Why the Condition Matters
The government is using the tax rate as an incentive: miners pay half as much if their gold passes through an approved buyer. As we reported in September, an official at Zambia’s Ministry of Mines and Minerals Development said Zambia was considering a cut in the value added tax (VAT) on gold for the same purpose.
The saving only helps miners who can reach an approved aggregator and who are offered a fair price. We found no published figure for how much gold small miners now sell through such buyers, so the size of the shift is not known.
What Else Is in the Budget for Mining
The same budget proposes a 15% withholding tax on dividends paid by mining companies, up from 0%, and a 5% export duty on zinc concentrates. Our report on the budget covers the wider tax package, including a value added tax (VAT, a sales tax on goods and services) rising to 16.5% from 16%.
For investors in Zambian mining, the budget cuts the cost of one small gold stream while adding costs for larger producers. Background on the country is in our guide to Zambia.
What Is Not Known
The tax document says the Ministry of Mines and Minerals Development approves aggregators, but reports do not say how many will operate by January. They also do not say whether the rate for other sales changes.
The budget measures are proposals until Parliament approves the related tax legislation, so the 3% rate could change. More Zambian news is on our Zambia page.
What to Watch Next
The first checkpoint is parliamentary approval of the tax legislation behind the budget, ahead of the planned 1 January 2027 start. The second is the rollout of approved aggregators, which will show whether the lower rate reaches miners in practice.
Frequently Asked Questions
What is Zambia changing about gold tax?
Zambia proposes cutting the gold royalty for artisanal and small-scale miners from 6% to 3%. The lower rate applies only to gold sold to government-approved aggregators.
When would the cut start?
The budget’s tax measures are planned to start on 1 January 2027. They are proposals until Zambia’s parliament approves them.
Who benefits from the lower royalty?
Small-scale gold miners who sell to approved aggregators would pay half as much royalty. Miners who sell elsewhere would not get the cut.
Sources: Zambia Revenue Authority (the national tax collector), 2027 Budget Highlights, overview of tax changes (zra.org.zm); Government of Zambia, 2027 National Budget presented to the National Assembly on 6 November 2026; Federation of Small-Scale Mining Associations, comments reported on 10 November 2026.
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