7 February 2018

Ethiopia: Ministry Earns U.S.#60.51 Million Amid Revenue Decline

Ministry of Mining disclosed that the nation has earned 60.51 million USD in the past six month from the sale of gold, value-added opal, gemstone, tantalum extracted through companies and traditional producers, despite failing to meet set target.

The Ministry also revealed that 1.6 million USD, and 80.9 million Ethiopian Birr has been racked up from petroleum and other mining works respectively.

According to Public Relations Director at the Ministry, Kiros Alemayehu, the foreign currency gained has shown a drop because of huge price dip for gold in the international market, lack of integrated market chain, the spread of contraband in some states.

There are also other issues identified as well by the Ministry as challenges faced during its first half year performance.

The fact that the gold mining system is not systematized and not strengthened through professionals and logistics despite the works done to amend such issues in gold extracting states, and the use of gold as currency in some border trade have been a challenge.

Furthermore, he also mentioned, the fact that some companies has not yet become operational at the expected timeline has also played a role in the dip.

In relation to this, the spread of illicit mining trade in border areas in addition to the lack of attention given to monitoring of production and income information of licensed producers, and giving the needed level of support in supplying produced gold to the Bank are also issues.

Moreover, the fact that the gold and other gemstone/jewelry that are produced in a traditional manner is not backed by modern production system has been identified as challenge.

The Ministry aims to do some works to curb the challenges among which is the work done in relation to bypassing the issue of contraband. By lessening the lowest gram acceptance of gold, and by making expanding its buying centers to areas such as Mekelle, Pawe and Moyale, which the Bank is working on, all the necessary touch are put in place on the part of the National Bank to curb contraband from its front.

Ethiopia

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