Zambia is seeking to significantly increase gold production and bring more informal gold trading into the formal economy as the copper-dependent country looks to diversify mining revenues and capture more value from its mineral resources.

ZCCM Investments Holdings (ZCCM-IH), the state-controlled mining investment company leading the government’s gold-sector transformation programme, estimates that formalising the country’s small-scale gold industry could unlock more than $1.8 billion in value.

Zambia produced about 127,000 ounces of gold in 2025. ZCCM-IH Chief Executive Officer Kakenenwa Muyangwa said raising annual output to several hundred thousand ounces was achievable if the country succeeds in integrating informal production into official supply chains.

The strategy is modelled partly on Ghana’s efforts to formalise artisanal and small-scale gold mining and channel more of the metal through official purchasing and export systems.

For Zambia, the scale of the opportunity is highlighted by a major discrepancy in trade data. In 2023, the United Arab Emirates reported importing almost $1.8 billion worth of Zambian gold, while Zambia’s official statistics recorded less than $128 million in gold exports. Hong Kong also reported about $108 million in imports from Zambia. The gap suggests that a significant portion of the country’s gold trade may not be captured by official export figures, although trade-data discrepancies do not by themselves establish illegal activity.

ZCCM-IH has already begun building a more formal gold supply chain. The company has partnered with Mining Mineral Resources to purchase gold from artisanal miners in Zambia’s North-Western Province and operates a similar model through Kamunshinshi Mineral Resources. It has also established a commercial gold-trading unit to source gold from producers in other parts of the country.

The government formally mandated ZCCM-IH in 2025 to lead the formalisation, development and transformation of Zambia’s gold sector. The initiative is intended to improve value retention, strengthen oversight and reduce the economic and environmental risks associated with poorly regulated mining operations.

ZCCM-IH has also expanded its investment footprint. In May 2026, the company incorporated Kyalo Goldfields, a joint venture with Mining Mineral Resources focused on gold exploration and mining in the Kikonge area of North-Western Province. ZCCM-IH holds a 51% stake in the venture.

Gold is being positioned as a complement to, rather than a replacement for, copper, which remains the backbone of Zambia’s mining industry. The government is simultaneously seeking to expand copper production, while the push into gold offers an additional source of foreign exchange and potential fiscal revenue.

The strategy also comes as elevated global gold prices increase the economic incentive to invest in the sector. For Zambia, the challenge will be to persuade artisanal and small-scale producers to sell through formal channels while providing competitive prices, reliable purchasing networks and better processing infrastructure.

If successful, the government hopes to turn a largely informal gold economy into a more transparent and productive source of national revenue — while reducing the value currently lost outside official supply chains.