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Ethiopia: National Bank’s Gold Purchase of the 2022/2023 Fiscal Year Shows a 62.5% Decrease

Gold Benishangul Gumuz

The National Bank of Ethiopia (NBE) has reported a decrease in the amount of gold it has received during the current fiscal year. The bank received 2,684 kilograms of gold during the past nine months of the fiscal year out of the planned 10,000 kilograms of gold representing a 62.5 percent decrease compared to the same period last year. The data of the Ministry of Mines shows that the country has produced 2.68 tons of gold in the current fiscal year.

NBE cited issues with the proper delivery of gold produced by traditional gold producers and MIDROC Legedenbi mining company. Fikadu Dgafe, the Bank's Deputy Governor and Chief Economist, stated that smuggling was a challenge and urged everyone to be vigilant. This was reiterated by Million Mathewos, the State Minister of Mines, who stated that the decrease in gold production was not due to security issues in the country, but rather the illegal smuggling trade. He noted that Regional States had not been properly regulating the licenses they issue to gold producers.

According to Fkadu Dgafe, NBE is taking steps to incentivize legal business by offering a 35 percent increase in purchase prices. On the other hand, a new Mining Proclamation has been drafted and submitted to the Council of Ministers by the Ministry of Mines to address bottlenecks that occur in the production of major mineral resources, including gold.

Ethiopia earned USD 560 million from gold during the 2021/2022 fiscal year. Gambella, Benishangul Gumuz, Oromia, and South West Ethiopia are known for their gold resources. Gambella Regional State’s Akbobo narrow greenstone sub-belt is labeled a high potential target for gold exploration by the Ministry of Mines. 2Merkato reported that one of the major Regional States which was rich in gold, Benishangul Gumuz, had already registered low income from gold during the first nine months of the 2022/2023 fiscal year when compared to the same period last year. You can read the news here.

Source: Fana BC

Additional source: 2Merkato Archives and Ethiopian News Agency