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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Ministry Secures $86m Grants

An 86.18 million dollar grant agreement was signed between the Ministry of Finance, UNICEF and UNFPA last week to support the agencies' ongoing country programs for the fiscal year. Out of the total grant, UNICEF committed 70 million dollars to support its water, nutrition, education, health, sanitation, child protection, and gender projects. Meanwhile, UNFPA pledged 16.1 million dollars for family planning, maternal health, adolescent and youth development, and gender equality and women empo...


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Authority Reports Fuel Import Stats

Ethiopian Petroleum & Energy Authority (EPA) disclosed that 3.2 million tons of fuel were imported into the country during the last fiscal year. The figure includes 2.04 million tons of diesel and 767,672tns of benzene. In the past fiscal year, the digital payment system, Telebirr, facilitated transactions totalling 103 million volumes worth 61.8 billion Br. Of these transactions, 81.39pc were for diesel, while 17.82pc were for benzene. The number of fuel stations increased from 682 to...


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Commercial Bank Collects $3.2b in Foreign Currency

The Commercial Bank of Ethiopia (CBE) announced robust performance in foreign currency collection for the past fiscal year, achieving 3.2 billion dollars in total mobilisation. This includes 2.07 billion dollars in remittances, with the Bank's Diaspora banking service and CBE Birr contributing 89.9 million dollars to the total. The performance details were shared during CBE's annual review meeting last week. "This achievement is particularly gratifying given the challenging economic climat...


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