This archive report was first published on 27 November 2019.
On November 27, 2019, the Ethiopian government unveiled a draft policy document aimed at eliminating barriers to investment in the mining sector, a move that could transform the country into a middle-income nation.
According to the draft, the government plans to liberalize several sectors, including mining, to drive industrialization and increase the sector's contribution to GDP from the current 3% to 10%.
Speaking during a mining conference in Addis Ababa, minerals minister Samuel Urkato presented the draft policy document, which aims to address uncertainties that have held back the development of the mining industry.
The government has taken several measures to woo mineral investors, including reducing the corporate income tax rate for miners by 10 percent to 25 percent of earnings and lowering the precious metals royalty rate to 7% from 8%.
Moreover, Ethiopia will focus on minerals used in agriculture, such as potash, and construction, such as basalt, pumice, and limestone, to drive industrialization and reduce the trade deficit.
The government is hopeful that the new measures will generate foreign exchange and plug in the trade deficit.
