Ethiopian Prime Minister Abiy Ahmed has highlighted the nation’s mining sector as a key driver of economic growth, predicting that gold revenues could reach an unprecedented $2 billion this year. Speaking at the inauguration of a gold exploration and mining facility in the Gambella Region on December 10, Abiy described Ethiopia’s economy as “one of the fastest-growing in Africa and a beacon of opportunity on the continent.”
Abiy emphasized the mining sector’s potential for attracting both local and international investment, positioning it as a cornerstone of Ethiopia’s economic transformation.
However, officials in Tigray, one of Ethiopia’s richest gold-producing regions, have raised concerns about unequal resource distribution. Getachew Reda, interim president of Tigray, revealed that during August, September, and October, “28.25 quintals of gold entered into the Federal Government,” yet the region has not received any financial returns.
Supporting this claim, Tekie Giday, branch manager of the Commercial Bank of Ethiopia in Shire Inda Selasse—Tigray’s gold hub—disclosed that $132 million worth of gold was purchased in just three months. Notably, Tigray’s annual regional budget is nearly $100 million, highlighting a stark contrast between gold revenues and local financial allocations.
The region continues to grapple with significant budget shortfalls while attempting to restore essential services disrupted during the two-year civil war. These tensions underscore the broader economic and political challenges Ethiopia faces in balancing national growth ambitions with regional equity and post-war recovery efforts.
