Ethiopia’s macroeconomic reforms boost mining investment, productivity – Minister

Addis Ababa, April 2, 2025 (FMC) — The Ministry of Mines emphasized that Ethiopia’s homegrown macroeconomic reforms have spurred a notable transformation in mining investment and productivity.

The Minister of Mines Engineer Habtamu Tegegn, explained the successes achieved in Ethiopia’s mining sector following the national reforms, which have led to substantial improvements in key economic pillars, including mining, agriculture, tourism, industry, and technology.

According to the minister, the increased cement production and the shift to a market-driven trade system have significantly bolstered the capacity of the construction industry.

He also pointed out that Ethiopia’s shift in vision and policy towards economic diversification has been pivotal, enabling the country to better harness its natural resources for growth.

In the mining sector, efforts are underway to enhance government-private partnerships, as well as to implement technology-driven, sustainable investment development and resource identification.

The Minister added that the government has also introduced favorable policy revisions to ensure the proper identification and development of mineral resources, with a focus on attracting both local and international investments.

Ethiopia has rich mineral resources including cement, iron, marble and granite that could use as essential inputs for the construction industry.

While there is significant domestic capacity for cement raw materials, there has historically been a gap in meeting the full demand of the construction sector, he stated.

However, Engineer Habtamu also noted that recent reforms have aligned supply and demand. The commencement of operations at Lemi National Cement and other factories now running at full capacity has ensured a sufficient supply of cement, facilitated through a market-driven trade system.

This development has allowed the construction industry to access materials at competitive prices and streamline its operations, he said.

The minister also pointed out that Ethiopia’s macroeconomic reforms have attracted international mining investors, particularly in gold production and favorable conditions have been created, enabling the country to deposit more gold into the national bank than in previous years, demonstrating the success of the development policies.

According to the minister, these reforms have not only boosted the mining sector but also improved the trading system for traditional gold producers, allowing them to contribute their output to the national bank.

A robust and coordinated operational system has been established with a special focus on preventing illegal mining activities, ensuring the sector’s integrity and sustainability, he told local newswire service ENA.