By Chisomo Phiri
Yami Gemstone Lab and Exports Pvt Ltd (YAGLE), a leading player in Malawi’s gemstone industry, has applauded the government’s decision to suspend the issuance of gemstone export permits for 21 days.
The move, announced by the Ministry of Mining, is aimed at reviewing and reforming the valuation framework for gemstones, a step that Yami Gemstone Lab believes is long overdue and critical for the sustainable growth of the sector.
In a statement released today, Yami Gemstone Lab has acknowledged that while the temporary ban may cause short-term disruptions for miners, traders, and exporters, it presents a vital opportunity to address systemic issues that have hindered the industry for decades.
“This decision is a bold and necessary step toward ensuring that Malawi’s gemstones are accurately valued and that all stakeholders, including miners, traders, and the government, benefit fairly from this lucrative industry,” reads the statement in part.
A CHANCE TO BUILD A ROBUST FRAMEWORK
The suspension of export permits provides the Ministry of Mining with a unique opportunity to develop and implement proper grading, certification, and appraisal systems.
These systems are essential to ensure that Malawi’s gemstones are priced according to their true market value, which will, in turn, boost government revenue through royalties and taxes.
However, Yami Gemstone Lab emphasized that the success of this initiative depends on the government’s ability to address critical gaps in expertise and infrastructure.
The absence of accredited gemologists and appraisers has been a significant barrier to the industry’s growth. Currently, the government has no accredited gemologist following the retirement of Rodrick Phiri last year.
Phiri, who obtained his credentials in 2014, was the only accredited gemologist in Malawi but failed to implement grading, certification, and appraisal systems during his tenure.
His retirement has left the Ministry of Mining with an inexperienced gemology technician, Wisdom Mpota, further highlighting the urgent need for investment in training and capacity building.
YAMIKANI JIMUSOLE: A CHAMPION FOR REFORM
Yami Gemstone Lab & Exports is headed by Yamikani Jimusole, one of the few accredited gemologists in Malawi and Africa.
Jimusole graduated from the prestigious Gemological Institute of America (GIA) Thailand campus in 2017 and has been a vocal advocate for proper grading, certification, and appraisal systems for the past four years.
Despite his expertise and efforts, the company has struggled to register any revenue due to the lack of systems and the undervaluation of Malawi’s gemstones.
“Malawi is sitting on a goldmine of rare and valuable gemstones, but without proper systems in place, we are losing out on billions of dollars annually.
“This 21-day ban is a step in the right direction, but it must be followed by concrete actions to establish internationally recognized standards and build the capacity of local players,” said Jimusole.
TANZANIA’S GEMSTONE EXPORT BAN: A CASE STUDY
Yami Gemstone Lab pointed to Tanzania as a relevant example of how a gemstone export ban can transform a nation’s mining sector.
Under the leadership of the late President John Magufuli, Tanzania banned the export of unprocessed gemstones in 2017, including tanzanite, gold, and other precious minerals.
The policy aimed to ensure that Tanzania derived maximum value from its resources by requiring that all gemstones be processed locally before export.
The results were significant:
INCREASED GOVERNMENT REVENUE
Tanzania reported a substantial rise in revenue from the mining sector, as processed gemstones fetched higher prices on the international market.
JOB CREATION
The ban encouraged the establishment of local processing facilities, creating jobs and fostering skills development.
REDUCED SMUGGLING
Stricter border controls and the construction of a 24-kilometer wall around the Mererani tanzanite mining area helped curb illegal mining and smuggling.
However, the policy also faced challenges, including criticism from small-scale miners and traders who relied on the export of raw gemstones for their livelihoods.
This highlights the importance of balancing government control with the interests of local players-a lesson Malawi must consider as it implements its own reforms.
CALL FOR COLLABORATION AND ADOPTION OF INTERNATIONAL STANDARDS
Yami Gemstone Lab has urged the Ministry of Mining to collaborate with key institutions such as the Malawi Revenue Authority (MRA) and the Malawi Bureau of Standards (MBS) to adopt and implement international standards.
These include guidelines set by the International Colored Gemstone Association (ICA), the Responsible Jewellery Council (RJC), and CiBJO (the World Jewellery Confederation).
“Adopting these international standards will enhance the credibility of Malawi’s gemstone industry and make our gemstones more competitive in global markets.
“It will also attract responsible investors and buyers who prioritize ethical and sustainable practices, ultimately leading to higher revenues for the country and better returns for miners and traders,” further reads the statement.
REFORMING THE EXPORT DEVELOPMENT FUND (EDF)
The gemstone lab also highlighted the need to reform the Export Development Fund (EDF), which has been purchasing only a select few types of gemstones despite Malawi producing over 25 different types.
“The EDF must develop proper grading and pricing scales to ensure that all gemstones are valued fairly.
“This will encourage diversity in the market and maximize the economic potential of Malawi’s gemstone resources,” emphasizes the statement .
COMBATING SMUGGLING AND ENSURING TRANSPARENCY
While the export ban is a positive step, Yami Gemstone Lab warned that it may inadvertently lead to an increase in smuggling.
“The government must strengthen border controls and work with stakeholders to curb illegal activities that undermine the industry.
“Transparency in valuation and export processes is key to building trust and ensuring the long-term success of the sector,” the statement highlights.
UNLOCKING MALAWI’S GEMSTONE POTENTIAL
Malawi is home to some of the world’s rarest and most valuable gemstones, including rubies, sapphires, grandidierite, spinel, aquamarine, tourmaline, and zircon. If properly managed, the gemstone industry has the potential to generate at least $1 billion annually, significantly contributing to the country’s economic growth.
Yami Gemstone Lab commended the Ministry of Mining for taking this decisive action and urged the government to use this opportunity to implement lasting reforms.
“While the road ahead may be challenging, the long-term benefits of a well-regulated and thriving gemstone industry will far outweigh the short-term inconveniences.
“The time to act is now, and we stand ready to support the government in this critical endeavor.”
“Together, stakeholders can unlock the true value of Malawi’s gemstones and build a brighter future for all involved in the industry,” the statement concludes.
