Ministry of Mines (MoM) has reported that the country’s gold exports have reached 75% of the annual target during the first nine months of the 2023/24 budget year.

According to Minister Habtamu Tegegn, over three tons of the precious metal were exported during this period, which is 12.6% more than the same time in the previous budget year. Out of the total quantity, 2.4 tons were exported by companies, while the remaining 0.4 tons came from artisanal miners.

“The revenue target from gold export has reduced in the nine months of the budget year, even though it is higher than compared with the previous year,” Habtamu told the parliament. He attributed this reduction to factors such as delays in production by certain investors and the ongoing issue of gold smuggling.

Despite the revenue target reduction, the Minister noted that the overall performance of the mining industry has been positive. Gold exports during the specified period generated $274 million, an 83% increase compared to the previous year.

In addition to gold, Ethiopia also exported 9.9 tons of processed and rough opal, 11,176 tons of lithium, 69.8 tons of tantalum ore, and 79.5 tons of jewelry. The total export value of industrial minerals reached $13.3 million.

“Overall, the mining industry has generated $289 million in exports during the stated period, which represents a 68% increase over the same period last year,” Habtamu said.

The Minister also highlighted progress in import substitution, with the cement industry meeting 64% of its coal demand from domestic sources. Two new factories are expected to begin producing washed coal in the upcoming year, while one facility is currently providing this service.

However, the steel industry faced a 22% decrease in production during the nine-month period, as players struggled to secure foreign currency for imported inputs. The industry also continues to struggle with the import and illegal trade of finished steel goods.

Overall, the data presented by the Ministry of Mines suggests that Ethiopia’s mining sector is making strides, with gold exports leading the way, but challenges related to logistics, investment, and competition from illicit trade persist.

The environmental release of BtGt cotton is shortly to be approved by the National Variety Release Council (NVRC), a council made up of many stakeholders in the agricultural and related areas.

Through the Ethiopian Institute of Agriculture Research (EIAR), Ethiopian researchers have been processing and testing genetically modified organism (GMO) cotton for around 15 years.

Four seed variants with characteristics for herbicide and bollworm pest resistance have been evaluated in confined field trials (CFT) on BtGt cotton before being tabled for environmental release.

At the CFT test locations in Gewane, Weyto, Metema, Omorate, and Melka Werer, four types have been engaged.

According to Dereje Girma, Director of the EIAR’s Agri-biotechnology Directorate, Sudan, Pakistan, India, and Uzbekistan all utilize these seed varieties.

One of the senior researchers, Dejene, said that the test at CFT had positive findings.

In order to obtain input before releasing the varieties, the Ethiopia Environmental Authority recently called a public hearing as the last phase in the procedure.

Based on the information that Capital was able to obtain, the public hearing concluded over a week ago.

Dejene claims that two of the four seed varieties that were evaluated throughout the trials have been chosen for the environmental release application.

Bollworms are a severe insect problem in cotton cultivation that may reduce output by up to 50%.

In a similar vein, pesticides and disease are other problems facing the industry. To avoid the threat, major cotton-producing nations like Brazil are turning to genetically modified seeds.

The goals in Ethiopia were to evaluate the effectiveness of the Bt trait in the lab, as well as the performance of the BtGt hybrid cotton in resisting glyphosate herbicides and bollworms.

Additionally, the goal was to ascertain the adaptability, yield response, and fiber quality of the crop.

A sustained supply of the product is also necessary for the nation that sought to lead Africa’s textile and apparel sector.

The fact that GMO seed varieties that were illegally imported are already in use is one of the grounds for doing intensive study in this field.

According to the test conducted at the CFT, the productivity of GMO cottons ranges from 48 to 57 quintal per hectare, or around 32 quintal more than the yields of local types.

In 2022, EIAR and Black Stone Ethiopia Private Limited inked a public-private partnership until whereby the latter will import the technology and the institute would be responsible for scientific research.

“Black Stone will carry out the activity locally starting from the upcoming year, while for this season it may import and disperse the seeds since it does not have ample time for multiplication,” Dejene says, “As per the agreement, the company will multiply the seed locally, which is vital to tackle the hard currency issues and release for farmers.”The NVRC’s approval of the environmental release request would be a significant development for individuals who have been involved in the industry for a while, as well as the cotton agricultural sector, which is regarded as one of the key areas for the expansion of the national economy in general, according to sector experts.

Ethiopian cotton farmers are now able to use the illicitly imported genetically modified cotton that was smuggled out of Sudan.

According to Samson Assefa, Lead Executive for Cotton Development at the Ministry of Agriculture, farmers are very interested in GMO cotton that is being imported illegally since they know it has a big productivity boost.

“GMO cotton shall tackle bollworms and glyphosate herbicides problem, which is why big investors and farmers prefer it. The most recent action, if accepted by the committee, will make the usage of GMOs lawful,” he continued.

Samson states, “I can say it is 100 percent illegal Bt cotton adoption”. Currently, 84,000 hectares of land are covered in cotton plantations. “Therefore, in order to replace the illegal seed, which does not come with the whole package, such as a water need and other specifications, we must use the fast track approach to the legal system.”

“Bt cotton is our priority,” he strongly stated.

“We anticipate receiving approval from the committee in the upcoming weeks,” Dejene told Capital.

The government intended for Ethiopia to become the center of Africa’s textile and garment industry and a major engine of economic expansion.

The goal of the fifteen-year National Cotton Development Strategy was to produce 1.1 million metric tons of cotton from cultivation on one million hectares of land.

“In order to increase local capacity, we are thinking about introducing BtGt traits into local varieties,” Dereje stated at the stakeholders and researchers consultative meeting that was conducted a week ago.

The country now produces around 50,000 metric tons of cotton annually, but in the next two years, the textile sector expects its need to reach 200,000 metric tons.

According to the 15-year plan, the nation would export around 50,000 metric tons of cotton, bringing in up to USD 125 million a year.

BGI Ethiopia has been sued for more than 8 million birr. The individual claiming that their 27% ownership share of BGI Ethiopia Plc. was illegally taken from them is demanding the return of their share ownership. They are also seeking payment of the unpaid dividend.

On May 31, 2024, Zewdnesh Getahun Asrat filed her case with the Federal First Instance Court, a special court for trade and investment cases. The lawsuit includes Jean-Paul Blavier, the former CEO of BGI who passed away last month, the representative of the other defendant Brasseries International Holding Limited (B.I.H), and Hebu Properties Limited.

Zewdnesh Getahun asserts that the court should order the payment of the estimated Birr 8,283,000 representing BGI Ethiopia’s 27% share and undistributed dividend. Her lawyers argue that despite her proven 27% ownership in BGI, a company that has experienced significant growth since its establishment, her ownership was illegally transferred based on a forged document falsely claiming that she had “completely transferred” her share in the company.

Zewdnesh Getahun claims that she founded BGI Ethiopia Plc. together with Mr. Castle, the main shareholder of Castle Group, after being introduced to Castle Group investors through her daughter, Lydia Mekonnen.

The plaintiff contends that when BGI, the Castel Group company, sold its entire share in BGI Ethiopia Plc., her share and ownership were fully preserved. However, she alleges that BIH purchased a share from BGI and, through capital changes, her 27% ownership share was illegally taken away and given to the 3rd and 4th defendants.

The plaintiff is seeking a court ruling affirming Zewdnesh Getahun as the owner of 27% of the shares of BGI Ethiopia Plc. Additionally, she is requesting an official verification of the company’s undistributed profits since April 2001 and payment with interest.