By: Ethiopian press agency

Despite its abundant reserves of gold, iron, coal, gemstones, salt, and natural gas, Ethiopia is still far from fully harnessing its mining potential. Now, federal and regional mining officials say that investing in technology, skilled manpower, and cross-sector collaboration is essential to unlocking the sector’s true value.

Speaking at a handover ceremony where the Ministry of Mines (MoM) distributed 29 vehicles and 81 laptops to regional mining bureaus, Mines Minister Eng. Habtamu Tegegne stressed that the country’s mining potential remains largely underexploited. The handover, held recently in Addis Ababa, signals a renewed push to modernize and decentralize mining governance.

“Ethiopia generated 3.5 billion USD from mining in the 2024/25 fiscal year, making it the top source of foreign currency. Yet, the sector can do much more. It has the capacity to produce up to 39 tons of gold annually,” Habtamu said.

He cited major bottlenecks such as limited investment, logistical hurdles, and shortages of skilled professionals, all of which have kept the country from fully capitalizing on its mineral wealth. He emphasized the need for technological integration and research-based planning to drive productivity.

The mining sector has also contributed to market stability by supplying raw materials, such as cement, essential to construction and infrastructure development.

In Tigray, where mining activity is gradually resuming under the Interim Administration, the Mining Bureau Deputy Head Tesefalem Hadigo highlighted the state’s diverse deposits—from construction-grade materials to precious and semi-precious minerals.

Tesefalem said that the latest support from the Ministry marks a departure from the past, when assistance was limited to short-term training. He noted that in 2024/25, the state supplied 189 quintals of gold estimated at 250 billion Birr to the National Bank of Ethiopia (NBE). Traditional mining alone has created around 50,000 jobs, a figure that could multiply with improved management and private sector engagement.

“The mining sector can be transformative for our economy, but it needs to be guided properly from kebele to federal level, with a strong environmental safeguard,” he emphasized.

Benishangul-Gumuz State is also making strides. The State Mining Bureau Head Admasu Moreka confirmed that his office received three vehicles and eight laptops— crucial tools in the fight against illicit mining and contraband trade, which have long plagued the state.

According to Admasu, the state supplied 4,700 kilograms of gold to NBE this fiscal year, far exceeding its planned target of 1,500 kilograms. It also generated 49 million Birr, achieving 98% of its revenue target, and created 3,800 new jobs out of the 4,000 planned.

However, he identified persistent gaps in geophysical mapping capacity, which remains a serious barrier to identifying and extracting untapped resources. Benishangul-Gumuz is home to 12 types of mineral deposits, but the lack of scientific exploration hinders their utilization.

He praised the federal government’s macroeconomic reform program, saying it has helped ease financial constraints by enabling better budget allocations for mining infrastructure and governance. A regional taskforce led by the state’s Vice President is also showing promising results in curbing gold contraband.

Ethiopia’s mining sector stands at a critical juncture. While production and revenue figures are encouraging, officials agree that the country must scale up its institutional capacity, attract major investment, and embrace innovation to fully realize it’s potential.

The recent distribution of equipment is a small but symbolic step—one that indicates stronger federal commitment and a more coordinated approach. With a growing focus on regional empowerment, environmental stewardship, and integration with national reforms, Ethiopia’s mining sector may be poised for a long-overdue transformation.