9 Tonnes of Gold Enter NBE’s Formal Supply Chain From Benishangul-Gumuz

More than 9 tonnes of gold entered Ethiopia’s formal gold-buying system from Benishangul-Gumuz during the 2025/26 financial year, as the country intensifies efforts to channel artisanal production through regulated markets.

The regional mining bureau reported that 8,985 kilograms of gold were delivered to the National Bank of Ethiopia (NBE) during the year.

The volume makes Benishangul-Gumuz a significant contributor to Ethiopia’s formal gold supply and marks a sharp increase from quantities previously reported by the region.

Regional data show that gold deliveries had reached about 3.7 tonnes over 10 months in an earlier reporting period, following deliveries of about 548kg in a single quarter.

The latest figure comes as the NBE seeks to increase the amount of domestically produced gold entering formal channels, part of a broader effort to strengthen foreign-exchange earnings and build reserves.

Artisanal mining drives supply

Benishangul-Gumuz, a key Ethiopian gold producer focused in Assosa, Kemashi, and Metekel, relies on artisanal and small-scale mining. While recent formal deliveries highlight potential output through authorized channels, monitoring remains difficult. Regional authorities cite illegal trading and proximity to the Sudan border as major obstacles to tracking gold.

NBE seeks more gold for foreign exchange

Rising formal gold deliveries align with Ethiopia’s strategy to bolster foreign currency reserves.

To curb illicit trade and boost resources, the NBE uses purchasing incentives and premiums for licensed suppliers.

This formalization complements broader foreign-exchange reforms active since 2024, treating gold as a vital source of foreign currency.

NBE’s role in the gold market may change

The NBE is considering market changes alongside rising gold deliveries.

Plans include phasing out central bank premiums, letting commercial banks buy gold, and tightening quality controls.

This would lower the NBE’s market dominance and expand private-sector involvement.

Miners gain more sales channels, while regulators must strengthen licensing, quality checks, and oversight.

Illegal trade remains a challenge

Formal delivery surges do not guarantee all local gold enters regulated markets, as illegal mineral trading remains a major constraint.

The sector also struggles with hazardous chemical management in artisanal operations.

To address this, the regional administration aims to curb illegal activities while maximizing economic returns.

Benishangul-Gumuz generated over $1.18 billion in mining revenue over five years, largely driven by gold.

Beyond gold

The region plans to boost coal and marble production to supply industrial inputs, expand mining’s economic role, and improve formalisation and oversight.

The key takeaway for Ethiopia’s gold market is the volume entering formal channels, with Benishangul-Gumuz delivering 8,985kg in 2025/26. Future success depends on sustaining this supply and curbing illicit trading as the NBE prepares to open gold purchasing to private banks.

Source: Birrmetrics