Mineral export which Ethiopia considers as one of its main foreign currency earners has registered a dismal performance during the past nine months, officials have said.
The country earned only $39.6 million against the projected $766.9 million in the stated period, Ministry of Mines and Petroleum revealed in a briefing on Tuesday.
Only 8.85 percent of the target was attained by the ministry, according to Geremew Negasa, Planning and Evaluation Director at the ministry.
As part of their effort to rectify this huge mismatch, ministry officials said they have embarked upon deep institutional reforms at all level in order to maximize the revenue in foreign currency during the coming budget year.
Speaking to journalists about the dismal performance of the sector, Mines and Petroleum Minister Samuel Urkato pointed out that the major factors that contributed to the low performance were peace and security, illegal mining, corruption, and rent-seeking, among others.
However, the minister pointed out that Ethiopia is in the final stages of reforming the mining sector to shore up its potentials.
About 160 companies are engaged in the sector and the ministry hope to attract more foreign investors.
“We have to develop this sector at any cost in order to stabilize the national economy,” the minister vowed.
According to the nine month performance report, mining companies produced and exported 646.304 kgs of gold, 1354.27 cubic meters of marble and 145.680 tons of tantalum and earned $39.6 million which has shown almost a 100 percent decline compared with earnings last year during the same period.
MG/as/APA