This EITI Report covers Ethiopia's extractive sector in 2016-2017. It was published in August 2019.
The country is a leading producer of gold and limestone, but also produces smaller quantities of tantalum, salt and pumice. Ethiopia EITI aims at helping the government reform the mining sector to ensure a good return on Ethiopia’s significant untapped mineral resources. Ethiopia's latest EITI report is for the financial year 2016/2017.
The three main taxes and fees imposed on companies operating in the mining sector include income tax schedule C (mining), customs duties and signature bonuses. The Ethiopian Revenues and Customs Authority (ERCA) is the main body responsible for collecting and managing taxes paid to the central government. The Ministry of Mines levies sector-specific fees while state governments collect their shares of royalties, excise tax and various other fees directly. No petroleum or mining contract has been disclosed.
Oil and gas licenses are awarded on the basis of competitive tender, while mining licenses are awarded on a ‘first come first served’ basis.
Objectives of beneficial ownership transparency in Ethiopia
- To foster transparency and accountability in the extractive sector;
- To deter corruption, prevent collusion between companies and Government;
- To reduce tax evasion by operating companies; and
- To promote the economic benefit gained from the nation’s natural resources.
Progress on implementing beneficial ownership disclosure
Due to the significance of the small-scale mining sector in Ethiopia, coverage of the companies with exploration licenses and small scale mining license holders will be one of the main challenges. A 2017 scoping study suggests a high level of enthusiasm among Ethiopian stakeholders on beneficial ownership. The main challenge will be to combine a significant awareness and training programme with work to build new systems and processes to collect and share the beneficial ownership information.
Ethiopia's latest report (2017) requested beneficial ownership data for selected companies. Not all companies provided provided names of natural persons as beneficial owners although other details such as level of ownership and nationalities of the owners were provided. The benecifical ownership data was requested from 7 companies.
Ethiopia EITI plans to organize, among other things, a workshop for relevant Government and non-Government entities on beneficial disclosure. Read Ethiopia's beneficial ownership roadmap below for more information.
Ethiopia is a leading producer of mineral commodities such as gold, which accounts for over 83% of output, but also produces limestone, salt, pumice and tantalum. There is also significant informal production, with around 350,000 artisanal gold miners estimated to support a population of up to five to seven million. According to the 2017 EITI Report, more than half (59%) of Ethiopia's gold production came from the ASM Sector. Ongoing exploration is taking place for oil and gas, although no commercially viable discoveries have yet been found.
Ethiopia has rich deposits of coal, tantalum, iron, nickel, manganese, potash and phosphates. Gold and tantalum reserves are found in the South, West and North of the country. The oil and gas sector is still at the exploration phase. While largely untapped, resources are under development to help diversify Ethiopia’s economy away from agriculture.
|Gold||>200||metric tons||Around Adola, Myale, Metekel, Tulu kape, Dul, Odagodere, Benshangul, Akobo,Tigray|
|Coal||>360||million metric tons||Around Moye, Delbi, Yayu, Chilga, Gojeb, Mush, Sar wiha kunzila, Wuchale, Haik, Dese, Mersa, Arjo, Mendi, Kindo halal, Morka, Jeren, Lalosapo.|
|Tantalum||19435||metric tons||Around Adola/Keneticha|
|Platinum||12.5||metric tons||Around Yubdo, Oromia.|
|Iron||68.4||million metric tons||Around Bikilal, Melka arba and others.|
|Nickel||17||million metric tons||Around Adola.|
|Manganese||207563||metric tons||Around Afar/ Inkafala.|
|Limestone||>900||million metric tons||Around Mekele, Abay, Butajira, Ogaden, Denakil, Diredawa, Harar.|
|Gypsum||57.4||million metric tons||Around Tigray, Oromia, Amhara.|
|Clay||21.6||million metric tons||Around Mossobo, Diredawa, Melka jebdu, Debrebirhan, Burayu.|
|Potash||1.3||billion metric tons||Around Afar.|
|Phosphate||181||million metric tons||Around Bikilal, Melka arba.|
|Marble||100||million metric tons||Around Daletti, Mora, Baruda, Bullen, Hulakuni, Tigray.|
|Granite||70||million metric tons|
|Silica sand||3.4||million metric tons|
|Feldspar||500||thousand metric tons|
|Quartz||400||thousand metric tons|
|Dolomite||2||million metric tons|
|Kaolin||>20||million metric tons|
|Datomite||>120||million metric tons|
|Bentonite||172||million metric tons|
|Soda ash||460||million metric tons|
|Salt||4.3||billion metric tons|
|Sulfur||6||million metric tons|
|Graphite||460||thousand metric tons|
|Kyanite||>10||million metric tons|
The latest EITI disclosures show that total revenues received from the extractive sector amounted to ETB 2,244 million (USD 64 million) in 2016/17. Ethiopian Revenue and Customs Authority accounted for 86% of the total revenue stream generated by the sector, followed by the Ministry of Mines and Petroleum (MoMP) accounting for 9%. Regional governments received 4% while 1 % went to social contributions.
State governments receive their shares of royalties, and collect and manage excise tax, land rentals, license fees and ‘Pay As You Earn” personal income tax in addition to their budget allocations from the Ministry of Finance.
The Petroleum Training Fund is a separate bank fund which is managed by Ministry of Mines and Petroleum and aims to fund capacity building activities in the oil and gas sector. Training fees from oil and gas companies are paid directly to the Petroleum Training Fund account.
The objectives of Ethiopia EITI includes ensuring revenue transparency, raising awareness about license allocation procedures, and promoting corporate social responsibility in the mining sector. Ethiopia EITI also covers the small-scale mining sector in its reporting. So far, Ethiopia has published its fourth and latest (2016/17) EITI Report in August 2019.
EEITI's objectives are:
- To ensure free, active and Independent engagement of stakeholders in over sighting and managing EEITI governance
- To review and improve any legal and institutional barriers that affect transparency, stakeholder engagement, and revenue management
- To improve data reliability, date quality data accessibility and public dialogue;
The government, through the Minister of Mines, announced its intention to apply for EITI Candidature in February 2009. A Memorandum of Understanding was signed between the three stakeholder groups on 29 July 2009. The multi-stakeholder group, called the Ethiopian National Steering Committee (NSC), is composed of five representatives from each stakeholder group. A draft EITI law is being reviewed by the Ministry of Justice and is expected to be adopted in 2019. The EITI Champion is H.E. Samuel Urkato (PhD), Minister of Mines and Petroleum.
Recognizing the importance of improving transparency and accountability in the extractive sector, advantage of working together with multi-stakeholder groups & the outcome of their engagement in the overall operation of EITI, the Government has showed its commitment to be open and facilitate fertile environment and to accommodate interested actors and then resumed applying EITI since 2009 and strongly continued extending the objective of the initiative across the country following the designation of the country as a candidate in March 2014.Since then,
This EITI Report covers Ethiopia's extractive sector in 2015-2016. It was published in April 2018.
The 2016 EITI Standard requirement 2.5 makes it mandatory after 1 January 2020 for all implementing countries to request beneficial ownership information and for companies to disclose this information. EITI implementing countries were required to produce a roadmap on beneficial ownership disclosure by 1 January 2017.
Here is a scoping study reviewing the legal and institutional framework for beneficial ownership in Ethiopia, as well as a review of the EEITI 2016 beneficial ownership roadmap published in December 2016.
A report by Ethiopia EITI on the artisanal and small-scale mining sector and its contribution to the economy.
The study suggests the following next steps for including of ASM in the scope of EITI reporting which can be relevant for other implementing countries:
Establishing regular reporting mechanisms for ASM data as well as disclosure and dissemination of information to help inform policies and activities in the sector.Increasing awareness of ASM as a formal and significant source of income for the government,