The amount of gold supplied annually from Southwest Ethiopia to the National Bank has plummeted from 800 kilograms to just 90 kilograms, according to G/Mariam Setegn, Director of the region’s Minerals and Energy Agency.
Between 2007 and 2023 (2000 and 2015 E.C.), significant quantities of gold were regularly delivered to the National Bank, but in the past two years, the supply has drastically declined. G/Mariam noted that in 2009 and 2011 (2002 and 2003 E.C.), up to 800 kilograms of gold were collected from the region each year, and this level of production continued until 2023. However, since then, the quantity of gold reaching the National Bank has not exceeded 90 kilograms annually.
The director clarified that the decrease is not due to reduced production, as discussions with producers and suppliers indicate that output remains steady. Instead, the primary cause is the rise of illegal gold trading in the region. Illegal buyers are offering up to Birr 1,000 per gram, luring gold suppliers away from the official channels that supply the National Bank.
The introduction of modern equipment, such as metal detectors and washing machines, has not significantly impacted the official gold supply, which remains low. The lack of adequate regulation and enforcement has further contributed to the reduction of gold entering the National Bank, as illegal trade continues to thrive.
Source (including image): Sheger FM 102.1
