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This measure is contemplated to break up the entrenched illicit gold trade in Tigray and revive the flow of the precious metal to the central bank.
In Ethiopia, regulators are considering granting a subsidiary of the Endowment Fund for the Rehabilitation of Tigray (EFFORT) exemption from the credit cap imposed on banks as well as other special privileges. This measure is contemplated to break up the entrenched illicit gold trade in Tigray and revive the flow of the precious metal to the central bank,
During a round of discussions this week, the heads of Ezana Mining Deve
lopment Plc presented the National Bank of Ethiopia (NBE) with a list of proposals they would like to see met as a way to improve the flow of gold to the latter’s coffers. The mining firm is the sole authorized supplier of gold mined in Tigray to the NBE, but the last few years have seen its business dry up as artisanal miners opt for the better prices on offer in a booming contraband trade network in the region.
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An annual report published by the Ministry of Mines, however, indicates the central bank bought a little over 250 kilos of gold from artisanal miners in Tigray over the just-ended fiscal year, with no supply at all coming from Ezana despite expectations for half a ton of the precious metal from the EFFORT subsidiary. This figure is contested by miners indicating it is below the level supplied by the mining companies to the Government agencies.
