Central Bank Revises Gold Premiums Amid Supply Chain Chaos


Central Bank Revises Gold Premiums Amid Supply Chain Chaos

The National Bank of Ethiopia (NBE) has adjusted its gold procurement strategy in response to major supply chain disruptions over the past three years. Last week, the central bank introduced a tiered pricing system, offering premiums of 60pc on supplies ranging from 50gm to three kilograms, and up to 72pc for quantities exceeding 30Kg. This marks the third consecutive year of revisions to the central bank's gold premium rates, following last year's increase to a flat rate of 35pc. Illicit mining activities, particularly those conducted by unlicensed foreign operators, have impacted the country's gold production, which fell short of meeting 35pc of its targets last year. In response to the high incidence of contraband in the sector, the Ministry of Mines revoked special small-scale mining licenses. Minister Habtamu Tegegn informed the Parliament's Standing Committee for Industrial & Mining Development Affairs about the severity of the contraband issue, with some regions such as Sidama and Oromia achieving only 1.87pc and 24.13pc of their production targets, respectively. Artisanal miners, using traditional tools for gold extraction, increasingly resort to selling their gold through contraband channels, where prices can exceed twice the official rates. This year, nearly three tons of gold were produced, with 80pc sourced from industrial mining projects, predominantly led by MIDROC Gold


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Tech Ministry Falters as Audits Expose Mismanagement, Unmet Ambitions

The Ministry of Innovation & Technology is under scrutiny after an audit revealed lapses in project management and financial oversight. This raised questions about governance standards within a Ministry central to the country's tech-driven growth ambitions. According to the Federal Auditor General, the Ministry has completed only 11pc of its planned projects with its overall financial administration standing at 37.4pc for a year-long project that commenced in 2022. Budget mismanagement an...


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Central Bank Keeps Lending Lid Tight as Inflation Squeezes Economy

The Central Bank has reaffirmed its decision to maintain an 18pc cap on credit growth, reinforcing a commitment to tighter monetary policy during persistent inflation and economic uncertainty. The National Bank of Ethiopia's (NBE) monetary policy committee cited ongoing concerns over inflation, which stood at 19.9pc year-on-year (YoY), and liquidity imbalances as reasons to uphold the restriction on lending. Bankers and analysts interpret this move as evidence of regulators' determination to...


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Ethio Telecom Expands Services with DStv Streaming

Ethio telecom enters the entertainment pool with bundled DStv streaming services through high-speed broadband internet and mobile data packages. The partnership with MultiChoice Ethiopia aspires to merge the telecom's fiber broadband and mobile network with DStv's content. Subscribers can access DStv channels through mobile data or fiber broadband bundles, with discounts of up to 35pc through Telebirr or My Ethiotel (*999#) and up to 26.5pc at sales centers for fiber broadband bundles. Acc...