Zambia Targets $1.8 Billion Gold Opportunity Through Small Scale Mining Formalisation

Zambia is targeting more than $1.8 billion in potential value from its small scale gold mining sector as the government and state controlled mining investor ZCCM Investments Holdings seek to bring informal production into the formal economy. ZCCM IH Chief Executive Officer Kakenenwa Muyangwa said formalising existing informal gold trade could significantly increase official exports, pointing to a wide gap between gold shipments declared by Zambia and imports recorded by major destination markets, Bloomberg reported. In 2023, the United Arab Emirates alone reported nearly $1.8 billion in gold imports from Zambia, while Zambia’s official statistics recorded less than $128 million in gold exports.

The strategy draws heavily on Ghana’s experience, where artisanal and small scale gold production surpassed output from large scale producers for the first time in 2025 and generated about $10.8 billion in foreign exchange. Ghana’s state owned GoldBod has helped channel purchases from small scale miners through formal markets, improving traceability and strengthening foreign exchange reserves. Zambia hopes to replicate elements of that model by expanding official gold purchasing, improving traceability and creating stronger channels for miners to access formal markets.

ZCCM IH has already begun building the infrastructure for a more formal gold supply chain, including partnerships to produce and purchase gold from artisanal miners in North Western Province and a commercial gold trading unit that can buy from miners in other regions. The company believes Zambia could raise annual gold production from about 127,000 ounces in 2025 to several hundred thousand ounces, with elevated global gold prices providing additional incentive to accelerate investment and formalisation.

The push forms part of Zambia’s broader effort to transform artisanal and small scale mining into a more productive and responsible economic activity. The government launched its Artisanal and Small Scale Mining Strategy for 2025 to 2029 in July, while initiatives supported by planetGOLD Zambia are promoting mercury free processing, formal offtake arrangements and improved incomes for miners. If successfully implemented, the strategy could unlock significant foreign exchange earnings, expand government revenue and create a more transparent gold industry alongside Zambia’s dominant copper sector.