Ethiopia is still feeling the effects of the gold price crash of 2013, after earnings from mineral exports fell short of its target for the 2015/16 financial year.
The Horn of Africa nation’s
mineral export earnings for a 2015/16 – at $310-million – were 40% below the target of $500-million.
The country’s Ministry of Mines attributes the failure to achieve the target to the gold price remaining low on the international market, averaging $1 160/oz for the better part of 2015. Analysts predict that the price will dip below $1 000/oz this year.
In 2012, when the gold price hit a peak of $1 900/oz, Ethiopia achieved the best earnings to date from mineral exports, raking in $574-million.
“Gold prices at the international market have failed to recover from the 2013 crash and this continues to impact on our earnings projections,” says Ministry of Mines communications head Bacha Faji.
During the 2015/16 fiscal year, established companies exported minerals worth $138-million, while exports from artisanal miners generated $171-million.
The Horn of Africa nation exported 8 577 kg of gold, 8 485 kg of opal, 329 m3 of marble and 191 t of tantalum, besides other minerals.
According to Faji, Ethiopia is intensifying efforts to transform the mining sector so that it becomes a key driver of economic growth, with a target to rake in $5-billion a year from 2025.
The country aims to achieve this target by fully exploiting its vast mineral resources, which also include oil, potash coal, copper, platinum, rubies and geothermal, besides others.
The Ethiopian government wants the sector to contribute 10% of the country’s gross domestic product, up from about 4% currently.