Ethiopia

Статус ИПДО Значимой прогресс
Joined EITI in 2014
Последние данные от года 2017
Latest Validation 2018
Last updated 10 June 2020

Overview

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.

Extractive Industries contribution

  • 14 %
    to exports
  • 1.1 %
    to GDP
  • 1.1 %
    to government revenue
  • 4000
    jobs

Beneficial ownership disclosure

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.

Production

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.

Natural resources 

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.

CommodityReservesUnitSignificance
Gold>200metric tonsAround Adola, Myale, Metekel, Tulu kape, Dul, Odagodere, Benshangul, Akobo,Tigray
Coal>360million metric tonsAround Moye, Delbi, Yayu, Chilga, Gojeb, Mush, Sar wiha kunzila, Wuchale, Haik, Dese, Mersa, Arjo, Mendi, Kindo halal, Morka, Jeren, Lalosapo.
Tantalum19435metric tonsAround Adola/Keneticha
Platinum12.5metric tonsAround Yubdo, Oromia.
Iron68.4million metric tonsAround Bikilal, Melka arba and others.
Nickel17million metric tonsAround Adola.
Manganese207563metric tonsAround Afar/ Inkafala.
Limestone>900million metric tonsAround Mekele, Abay, Butajira, Ogaden, Denakil, Diredawa, Harar.
Gypsum57.4million metric tonsAround Tigray, Oromia, Amhara.
Clay21.6million metric tonsAround Mossobo, Diredawa, Melka jebdu, Debrebirhan, Burayu.
Potash1.3billion metric tonsAround Afar.
Phosphate181million metric tonsAround Bikilal, Melka arba.
Marble100million metric tonsAround Daletti, Mora, Baruda, Bullen, Hulakuni, Tigray.
Granite70million metric tons
Silica sand3.4million metric tons
Feldspar500thousand metric tons
Quartz400thousand metric tons
Dolomite2million metric tons
Kaolin>20million metric tons
Datomite>120million metric tons
Bentonite172million metric tons
Soda ash460million metric tons
Salt4.3billion metric tons
Sulfur6million metric tons
Graphite460thousand metric tons
Kyanite>10million metric tons
Talc118,175metric tons

Further information

Revenue collection

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. 

Revenue allocation

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.

Social and economic contribution

The mining and quarrying sector is still under-developed, contributing only 0.3% to GDP  and 0.9% to governemnt revenues in the year 2016/17. The oil and gas sector is still at the exploration phase in Ethiopia.

According to the EITI 2016/17 Report, there is limited data on how many people are employed by the extractive sector. Figures submitted from a few major companies suggest that the mining sector provided employment of less than 4,000 in 2016/17. The scope of people dependent on the mining sector is however much larger if one also considers artisanal and small-scale mining. It is estimated that between 300,000 and 350,000 people are engaged in artisanal and small-scale gold mining, while five to seven million people are believed to depend on mining for their livelihood.

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful. EITI reporting in Ethiopia includes production data by volume and value from artisanal and small-scale miners that trade formally. 

Implementation

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;

Governance

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. 

Timeline

Validation

Ethiopia was admitted as an EITI candidate in 2014. Ethiopia's first Validation against the Standard commenced on 1 April 2018. On 27 February 2019, Ethiopia was found to have made meaningful progress in implementing the EITI Standard.

Ethiopia's second Validation will commence on 27 August 2020. 

 

Ethiopia's progress by requirement

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