Ethiopia's foreign exchange earnings from opal exports have remained disappointingly low despite significant increases in export volumes over the past five years, according to data from the Ministry of Mines.
While the volume of opal exported has risen sevenfold over the last five years to 811 tons in the current fiscal year, proceeds from exports have declined sharply. Export earnings that averaged nearly $2 million annually have now plummeted to just $500,000 last year.
Habtamu Tegegn, Minister of Mines, in his latest appearance before parliamentarians to present the first quarter report of the Ministry, described the export performance as "disappointing."
The Minister blamed the lack of a minimum floor price for opal for the underperformance. Without a floor price mechanism, traders are able to buy Ethiopian opal at extremely low prices, limiting the country's ability to maximize profits from the gemstone, according to him.
Habtamu stated reforms are urgently needed and will be implemented soon to address this issue. Setting a fair minimum price is seen as crucial for Ethiopia to better leverage its growing opal production and translate volumes into higher foreign exchange revenues that can support development goals, according to him.
For over a century, Australia dominated the opal market, accounting for 95% of global supply. However, a major discovery in Ethiopia in the mid-1990s put the East African nation on the map as a key supplier.
While Australia maintains its leading position, production and demand for Ethiopian opals have been climbing steadily.