Ethiopia has secured US $681 million from the mining sector in the just concluded Ethiopian Fiscal Year 2020/2021.
The state media outlet Fana Broadcasting Corporate (FBC) made the announcement and said that the income generated from the mining sector has shown dramatic increase compared to the revenue gained in previous fiscal years.
In the 2019/2020 fiscal year, the country had earned US $207million from the mining sector. Mining is important to the economy of Ethiopia as a diversification from agriculture. Currently, mining comprises only 1% of GDP. Gold, gemstones (diamonds and sapphires), and industrial minerals are important commodities for the country’s export-oriented growth strategy. Tantalum mining has also been profitable. Other mineral resources are platinum, niobium, copper, nickel, manganese and molybdenum; marble is found extensively in most parts of the country.
The east African country has made several key reforms in the mining sector in recent years to boost its revenue from the key sector. This includes establishing several gold trading centers as Ethiopia seeks to boost its income from the mining sector. Gold has been exploited since ancient times. Large ore based gold mines are the Lega Dembi (the largest mine in the Sidamo province of southern Ethiopia and Sakaro, which have been mined by private companies; the amount of gold produced by these mines is reported to be about 5 tons per year.
The east African country has also undertaken a mass sensitization campaign that includes all relevant stakeholders to combat contraband mining activities that have been partly blamed for Ethiopia achieving low mining revenues in previous years.