Zambia’s $1.8bn gold ambition hinges on bringing informal mining into the open

Zambia is looking to Ghana for a blueprint to expand its small-scale gold industry and capture more value from production that currently sits outside official channels. State-controlled ZCCM Investments Holdings believes formalisation could lift annual output into the hundreds of thousands of ounces and unlock more than $1.8bn in economic value.

Key takeaways

  • Zambia is studying Ghana’s state-led model for buying and exporting artisanal gold.
  • Trading data suggests a substantial gap between Zambia’s declared exports and partner-country imports.
  • ZCCM is already buying from miners in North-Western Province and building a national trading operation.
  • The plan depends on formalisation, transparent pricing and stronger controls against illicit trade.

The proposal is less a sudden discovery story than a market-structure story. By bringing informal miners into licensed supply chains, Zambia hopes to improve traceability, collect more export revenue and give producers access to formal buyers.

The export-data gap

The scale of the opportunity is illustrated by sharply different trade records for 2023. The United Arab Emirates reported almost $1.8bn in gold imports from Zambia, while Hong Kong recorded a further $108m. Zambia’s central bank, however, recorded less than $128m in gold exports for the same period.

Those figures do not by themselves prove that all of the difference represents unreported Zambian production. They do, however, highlight the reporting, routing and traceability problems that formalisation is designed to address. For policymakers, the gap is a signal that more metal may be moving through unofficial or poorly documented channels than domestic statistics capture.

ZCCM builds a formal buying network

ZCCM has partnered with Mining Mineral Resources SAS to produce and purchase gold from artisanal miners in North-Western Province. It is also operating a similar model through Kamunshinshi Mineral Resources and has established a commercial trading unit intended to source gold from producers elsewhere in the country.

Chief executive Kakenenwa Muyangwa said annual production of several hundred thousand ounces could be achievable, compared with 127,000 ounces in 2025. The ambition will require more than higher prices: miners need reliable buyers, clear licensing rules, processing capacity and confidence that official channels offer competitive terms.

Ghana offers both a model and a warning

Ghana’s approach is centred on the Ghana Gold Board, which channels purchases from artisanal and small-scale miners into official markets. The country is seeking to direct about 127 metric tons of ASM gold into formal trade, with a stated objective of generating more than $20bn in annual foreign exchange. Small-scale production reportedly generated about $10.8bn in foreign exchange after the Gold Board’s establishment.

But Ghana’s experience also shows the difficulty of controlling the sector. Licensed artisanal mining is legal, while “galamsey” refers to illegal and often environmentally damaging activity. A Swissaid study estimated that Ghana’s reported exports fell short of partner-country records by about 229 metric tons between 2019 and 2023, valued at roughly $11.4bn.

What the plan means for market observers

For traders and market observers, the lesson is straightforward: headline production targets are only one part of the calculation. As with comparing a MatchTrader account or a Classic and Rapid evaluation, the operating rules matter—loss limits, verification and payout conditions determine whether a stated opportunity is usable in practice.

Zambia’s gold strategy will therefore be judged by execution: whether miners can enter the formal system, whether exports become auditable and whether revenue reaches the public economy. High bullion prices may provide momentum, but durable gains will depend on governance rather than price alone.