Illegal gold mining and trading in Zambia […]

Illegal gold mining and trading in Zambia remains a concern, especially after official data revealed a stark disconnect between reported gold exports from Zambia and official records.

 This is after Zambia reportedly exported gold valued at $1.7 billion to the United Arab Emirates (UAE) alone, while the Ministry of Mines and the Zambia Revenue Authority (ZRA) reflect only minimal gold exports, resulting in negligible gold mineral tax contributions to the national treasury.

 Against this backdrop, the Bank of Zambia, which purchases gold to strengthen foreign exchange reserves, reduce reliance on the US dollar, and stabilize the Zambian Kwacha, has confirmed acquiring only about 13% of the country’s officially produced gold in the first quarter of 2026.

 Bank of Zambia (BoZ) has confirmed that it purchased gold valued at just $25 million in the first quarter of 2026, a figure that represents a mere fraction of the country’s officially produced gold for the same period. However, according to data from the Ministry of Mines and Minerals Development (MMMD), Zambia produced approximately 1,134 kilograms of gold in Q1 2026, a 13% increase compared to the 1,000 kilograms produced in Q1 2025.

 At the average gold price of $4,688.53 per ounce as of May 12, the total value of the country’s gold output for the quarter surpassed $187 million.

During a quarterly media briefing attended by the Zambian Business Times (ZBT), BoZ Governor Dr. Denny Kalyalya confirmed the central bank purchased 154.3 kilograms of locally produced gold, valued at $25.4 million. Since launching its gold purchasing program in December 2020, BoZ has accumulated 3,380.78 kilograms of gold, with holdings valued at $500.9 million.

 The central bank’s gold acquisition initiative aims to bolster Zambia’s foreign exchange reserves, reduce reliance on the US dollar, and stabilize the Zambian Kwacha.

 However, with BoZ purchasing only a fraction of officially produced gold, questions linger over the destination of the remaining gold output. Concerns have intensified following reports of rampant illegal mining and trading in Zambia after in 2023, Zambia reportedly exported $1.7 billion worth of gold to the United Arab Emirates (UAE), according to the Observatory for Economic Complexity (OEC).

Yet, official figures from the Ministry of Mines and the Zambia Revenue Authority (ZRA) indicated that only 1,908 kilograms were produced in 2023, valued at about $120 million, highlighting a $1.4 billion discrepancy. Stakeholders and citizens have repeatedly raised concern over the missing billions, especially given that Zambia’s 2026 national budget is approximately $10 billion.

 Many argue that without robust tracking and reconciliation systems, the country risks losing substantial national wealth to illicit trade, undermining its economic prospects. Calls are mounting for the government to implement effective mechanisms for gold production and trading, to ensure transparency and safeguard Zambia’s mineral wealth for the benefit of its treasury and citizens.

Article by Tyndale Muchiya