Ethiopia’s Mining Sector Generates Over 5.7 Billion USD in Export Earnings

Addis ababa: Ethiopia earned more than USD 5.7 billion in foreign currency from its mining sector during the 2018 Ethiopian fiscal year, as the sector continued to expand its contribution to the country's economic development. Minister of Mines Habtamu Tegegne announced this achievement during a review of the sector's performance and outlined plans for the 2019 fiscal year. The meeting saw participation from representatives of the Ministry of Mines, the Ethiopian Geological Institute, and the Mineral Industry Development Institute.According to Ethiopian News Agency, the minister emphasized the mining sector as one of Ethiopia's crucial economic pillars, experiencing rapid growth in recent years. Gold production notably led in export earnings, with 44 tons produced by both mining companies and traditional miners, generating USD 5.65 billion in revenue. Furthermore, the sector created permanent employment opportunities for more than 271,000 individuals, with significant progress made in investment expansion, license issuance, and mineral-based product production to reduce import dependence.Habtamu Tegegne also noted the initiation of natural gas extraction in the country, which is currently used in major ceramic factories. Plans are in place to expand the use of natural gas for transportation, fertilizer production, and power generation. Additionally, the fiscal year saw the commencement of operations at fertilizer and iron smelting factories, with preparations underway to start the production of strategic minerals, including potash.The minister attributed some of the sector's growth to the delegation of license issuance authority to regional states for small-scale mining operations, which facilitated the expansion of mining activities. Looking ahead, the Ministry of Mines aims to generate USD 6.7 billion in revenue in the next fiscal year, building on the achievements of the concluded fiscal year. With abundant gold and other mineral deposits, Ethiopia's government has increasingly focused on enhancing minin g activities, improving sector management, and bolstering the role of mineral resources in the country's economic development.