Gold Export Figures at Odds

Jun 1 , 2024


[ssba-buttons]

A conflicting set of data emerges on gold exports in the nine months of the current fiscal year. According to the Ministry of Mines report 274 million dollars was earned during the period which showed a 83pc increase from the same period last year. However, data from the National Bank of Ethiopia indicates that gold exports generated around 546 million dollars in 2022/23, nearly twice the amount earned during the first nine months. Minister Habtamu Tegegn said they achieved the results by overcoming contraband trade and illegal transactions. He reported that close to 2.4tns were obtained from gold mining companies and an additional 0.6tns from artisanal miners. While the Ministry signalled growth in the gold mining sector during its report to the Standing Committee for Industrial & Mining Development Affairs in a span of a few weeks, some regional states like Sidama and Oromia met only 1.87pc and 24.13pc of their target. Habtamu said security issues had made conducting exploration activities challenging for some of the companies. "Contraband trade and security issues remain a problem," he said. According to the Minister, input shortages had also been difficult for steel production, with companies meeting only 29pc of their targets. He said foreign investors would be invited following feasibility studies on iron ores extraction to meet the troubled sector's demands.


Radar

Dangote, EIH Break Ground on Mega Fertilizer Plant in Somali Region

Ethiopian Investment Holdings (EIH), the state's sovereign investment arm, has struck a deal with Dangote Group to build one of the world's largest urea fertiliser complexes in Gode, Somali Regional State. The 2.5 billion dollars project will see EIH hold a 40pc stake while Dangote keeps 60pc. With agriculture employing over 70pc of Ethiopians, the government hopes the factory will cut fertiliser costs, create jobs, and boost crop yields while positioning the country as a regional hub. Design...


Radar

CBE Capital Joins Nib Bank for Market Expansion

Nib International Bank has partnered with CBE Capital, the investment arm of the Commercial Bank of Ethiopia (CBE), to expand investment banking services and shore up its finances. The deal covers advisory services, seeking to strengthen Nib's balance sheet, attracting capital, and positioning the bank in a modernising financial sector. The partnership follows a difficult year for Nib, where net profit dropped 36pc to 957.9 million Br and deposits shrank, despite paid-up capital climbing to ...


Radar

Credit Cap Nears Lift-Off

The National Bank of Ethiopia (NBE) is preparing to lift its long-standing credit cap by September, unlocking 1.3 trillion Br in bank lending. The move, flagged by board member and State Minister of Finance Eyob Tekalegn (PhD), follows years of complaints from businesses that borrowing limits choked large-scale projects. Eyob told a local radio station the reform reflects rising investor appetite and improved economic conditions, though he admitted "financing has been the biggest bottleneck for...