Ethiopia: the mining sector is
growing at a record rate and is attracting new investors
12
January 2021
Export
statistics in the Ethiopian mining sector have reached record numbers in recent
months, despite the COVID-19 pandemic. Further development of mining, its
modernization, efficient use of minerals, search for export opportunities and
support of domestic demand is a priority of the Ministry of Mines and Petroleum
of Ethiopia and the government. As part of the currently being prepared
ten-year economic plan, the government aims to attract new partners and
investors, to whom it offers advantageous conditions. Opportunities therefore
also exist for Czech companies.
According
to current information from the Ethiopian Ministry of Mines and Petroleum, the
profits from mineral exports for the first half of the current financial year
reached USD 340 million, which is almost 7 times more than for the entire
fiscal year 2018/2019 (USD 49 million) and almost 1.5 times more than last
financial year ($ 207 million). According to Ethiopian statistics, it exported
4,112 kg of gold, 26.9 tonnes of tantalum, 1,625 kg of unprocessed and 37.8 kg
of processed opal and 2,123 kg of other precious stones during the period
considered. Important export commodities also include sapphires, limestone,
various types of salt and pumice. In the mining sector, almost 50 thousand were
created in the last 6 months. new jobs and minerals worth over 1.7 billion
Ethiopian birr (approximately $ 42.5 million) have been delivered to the local
market.
Restrictions
on cross-border trade caused by government action as a result of the COVID-19
pandemic, and the federal government's efforts to curb illegal trade, along
with enhanced infrastructure, have led to improved official statistics. Gold
accounts for more than 80% of the value of Ethiopian mineral exports, and small
miners who dominate the sector are forced to use official trade channels due to
circumstances. The increase in currency reserves is also good news for the
Ethiopian National Bank, as the country has long struggled with a shortage of
hard currency.
Further
development of the mining sector is one of the government's priorities in the
forthcoming ten-year economic plan. One of the goals is to increase income from
mineral exports to the level of USD 17 billion in 2030. Favorable tax packages
and special customs conditions for the import of machinery, etc. are prepared
for investors. The government is also trying to support the mining sector
through intensified cooperation with academia. Under a new agreement between
the Ministry of Mines and Petroleum and Addis Ababa University (AAU), the
university will offer short-term training and a study program focused on the
mineral resources available in Ethiopia. In addition, a new Ethio-Center of
Miner Development (ECMD) at the Addis Ababa Institute of Technology (AAiT) was
established under the auspices of the Ministry.
Source:
https://www.kurzy.cz/zpravy/573814-