KEYIR NEWS - The Ethiopian government’s sweeping macroeconomic reforms have proven instrumental in revitalising the country’s mining sector, positioning it as a critical pillar in the nation’s quest for structural transformation and sustainable development.
Speaking to state media and industry stakeholders, Minister of Mines, Engineer Habtamu Tegegn, affirmed that the mining industry’s recent progress is directly linked to the government’s bold and systematic economic reform agenda.
“The comprehensive macroeconomic reforms introduced by the government have served not only to stabilise the economy but also to unlock the vast potential of Ethiopia’s mineral wealth,” he said.
The remarks came shortly after Prime Minister Abiy Ahmed (PhD) addressed the parliament, where he outlined the historic underperformance in the extractive sector. Despite being home to some of Africa’s most abundant mineral reserves, Ethiopia had previously struggled to reap commensurate benefits due to policy inefficiencies and underinvestment.
The Prime Minister noted that in the 2023/24 fiscal year, the country exported a mere four tonnes of gold. However, following the economic reforms and intensified focus on the sector, gold exports skyrocketed to 37 tonnes in the 2024/25 fiscal year, generating over USD 3.5 billion in foreign currency earnings.
“This is a testament to the transformational power of the reform programme,” the Prime Minister remarked.
The government’s approach, which includes liberalised investment regulations, enhanced transparency, and improved coordination among federal and regional actors, has revitalised investor confidence.
This renewed energy is reflected in the performance of other mineral sub-sectors beyond gold, particularly in industrial minerals and hydrocarbons.
Minister Habtamu also revealed that Ethiopia is preparing to introduce its first phase of natural gas to international markets, and confirmed ongoing preparations with Nigerian billionaire investor Aliko Dangote to establish a domestic fertiliser production plant.
The plant is expected to not only reduce the dependence on costly fertiliser imports but also stimulate industrialisation and job creation.
In addressing energy input constraints, the Minister cited the acute shortage of coal in previous years, which disrupted cement production and inflated construction costs.
“In the past, the country was compelled to allocate up to USD 300 million for coal imports. This severely impacted productivity in the construction sector,” he said.
“Today, as a result of improved domestic coal supply, we have been able to stabilise cement prices and increase production.”
He stressed that the mining sector has become a major contributor to foreign exchange reserves and a driver of import substitution.
“Our natural resources, including gold, potash, and untapped crude oil, are now being strategically harnessed to enhance the economic resilience,” he added.
The minister further underlined the importance of value-added utilisation of mineral outputs, stating that the production of urea-based fertilisers from gas is a strategic priority.
“Soil fertility is an existential concern for our agricultural sector. Extracting gas is not an end, but a means to transform agriculture through domestic fertiliser production,” he concluded.
The government has begun preparatory work for a fertiliser plant, part of a broader national strategy to transform Ethiopia from a raw commodity exporter into a value-added producer.