Ethiopia’s Mining Industry Worth $5bn

 Editor Business, Finance/Money, Mining & Construction

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VENTURES AFRICA – Evolving reports on Ethiopia’s economic opportunities suggest that the country could be sitting on a $5 billion mining sector, the full value of which can be realized by tapping into geothermal sources.
Already, according to Mines Minister Tolosa Shagi, Ethiopia had already realized more than $2.3 billion from the exports of gold, tantalum, opal, marble and other minerals over the past four years, and returns should double with more investment in the sector.
In 2013, the Ethiopian government collaborating with the World Bank commissioned a report titled “Strategic Assessment of the Ethiopian Mineral Sector,” results from which, also validated by private companies and geological surveys, states clearly that the East African country had a wide range of possibilities for the exploitation of mineral deposits.
“Exploratory activities conducted to date in limited parts of the country indicate that Ethiopia is endowed with a favourable geological environment that hosts a wide range of mineral and geo-energy potential. More than 130 companies are working in solid minerals operations and
oil and gas activities in Ethiopia. However, there is still a need to develop adequate transport and accountability systems to ensure that the development and management of resources is conducted effectively,” Mr Shagi opined.
A number of deals have been struck to help the country unearth more of its resources. Earlier in the year, the African Union and private developer Reykjavik Geothermal Limited provided some $8 million to support the drilling of two wells at the Corbetti Geothermal Power Project. Also, last year, Norway agreed to a $13 million deal with Ethiopia to help the carbon neutrality programme; this was facilitated through the World Bank’s BioCarbon Fund.
Ethiopia’s economy, according to the World Bank, has experienced strong and broad based growth estimated at 10.9 percent over the past decade compared to the regional average of 5.3 percent. Expansion of the services and agricultural sectors account for most of this growth, while manufacturing sector performance was relatively modest. Fully harnessing the potentials of the mining sector, therefore, makes economic sense in a broader context of boosting the country’s GDP and diversifying its economy.

By Emmanuel Iruobe