The Amhara Region of Ethiopia announced that it has produced and delivered 357 Kilograms of Gold to the National Bank of Ethiopia during the budget year of the country ended July 7, 2026.
This is indicated during the Amhara National Regional State Council 12th regular session of the 6th round, 5th year working term. During the opening session, the President of the regional government, Arega Kebede, presented his administration’s performance report for the 2018 Ethiopian fiscal year.
In his report, the regional president stated that significant and encouraging achievements had been recorded in identifying the region’s mineral resources, utilizing them as inputs for industrial development, and controlling illegal trade activities.
Among the major achievements highlighted was the production of 357 kilograms of gold and its delivery to the National Bank of Ethiopia for the first time, as a result of coordinated efforts and strengthened monitoring activities in the mining sector.
It was noted that this historic gold contribution not only enhances the region’s economic capacity but also plays a significant role in supporting the country’s foreign currency earnings and strengthening financial stability.
On the other hand, through a strong enforcement campaign aimed at protecting the region’s mineral resources from illegal exploitation, more than 133,500 cubic meters of illegally extracted minerals were seized. Additionally, through confiscation and corrective measures, 27,195,483 birr was collected and directly deposited into the government treasury, according to the regional president.
Furthermore, mineral exploration and resource assessment activities identified an estimated 5,148 tons of iron ore within a 10-square-kilometer area. In addition, within a 440-square-kilometer area, an estimated 2.5 billion tons of granite and 1.625 billion tons of black stone resources were discovered.
Reports show that Amhara’s official gold contribution was marginally small, hovering between 75.9 kilograms and 100 kilograms annually due to pervasive illegal smuggling networks and a lack of regulatory formalization.
The Amhara Region’s Five-Year Production Leap
The Amhara region’s formal gold sector has experienced a profound shift over the past five years, transforming from a highly fragmented, informal industry into a critical contributor to national reserves. Between 2021 and 2025, the region’s official gold contribution remained marginally small, hovering between 75.9 and 100 kilograms annually due to pervasive smuggling networks and a lack of regulatory formalization.
However, the region recently achieved a dramatic breakthrough by delivering a record 357 kilograms of gold directly to the central bank. This production surge was catalyzed by intense regional security clampdowns that successfully recovered over 133,500 cubic meters of minerals from illicit rings.
Ethiopia’s National Trend: A Drastic V-Shaped Rebound
On a national scale, Ethiopia’s gold production charts a stark V-shaped recovery pattern that has reshaped its macroeconomic landscape. Between 2021 and 2023, official state gold purchases plummeted from nearly 9,000 kilograms to a critical low of 3,460 kilograms. Severe armed conflicts disrupted logistics, while up to six tons of gold were smuggled out annually to hubs like Sudan and the UAE.
This decline reversed radically between 2024 and 2026 due to aggressive regulatory liberalization. National output exploded to roughly 39 tons, generating a staggering $3.5 billion in export revenue and allowing gold to overtake coffee as Ethiopia’s leading foreign exchange earner.
Critical Challenges to Stability and Trade
Despite record revenues, the gold sector faces severe structural bottlenecks that threaten long-term sustainability. The primary challenge remains a deeply entrenched illicit pipeline; field studies suggest that up to 61% of the country’s total extracted gold still slips into parallel black markets, draining billions from official reserves.
To combat this, the National Bank of Ethiopia (NBE) offered a 15% premium above global rates to incentivize artisanal miners. While this redirected tons of gold into formal channels, the artificial premium distorted domestic markets and placed a severe financial strain on the central bank’s balance sheet, while localized conflicts continue to disrupt remote supply lines.
Shifting Prospects and Future Industrialization
The outlook for Ethiopia’s gold sector hinges on aggressive modernization and structural market reforms designed to transition away from high-risk policies. In a historic pivot, the National Bank of Ethiopia announced plans to phase out its premium payments and exit the gold purchasing market, allowing private commercial banks to competitively trade gold under a liberalized framework.
Concurrently, the sector is shifting away from its 95% dependency on low-tech artisanal mining. Major industrial operations are gaining momentum, spearheaded by the $340 million Tulu Kapi Gold Project, which is projected to inject an additional 140,000 to 164,000 ounces of gold annually into the formal economy.
