Illicit Mining Fuels Violence and Instability Across Ethiopia, Threatening Economic Ambitions

A new report by global risk advisory firm WTW (Willis Towers Watson) reveals that this dangerous nexus is spreading across the continent, with Ethiopia emerging as a troubling case study. Illegal mining operations, often controlled by armed groups, are fueling instability, undermining economic growth, and threatening the country’s ambitious development plans.

In the war-scarred Tigray region, where a brutal two-year conflict left hundreds of thousands dead and brought mining operations to a standstill, as much as six tons of gold are smuggled out of the country annually by armed factions, according to WTW. This illicit trade not only deprives the Ethiopian government of vital revenue but also perpetuates cycles of violence in regions already struggling to recover. The problem extends beyond Tigray, with areas like Benishangul and Oromia reporting significant discrepancies between official mining outputs and government projections due to rampant illegal extraction.

The challenges are starkly illustrated by the experience of one organization attempting to launch a project. Access to the site was repeatedly blocked by militant violence, interference from regional authorities, and encroachment by illegal miners—a trifecta of obstacles that highlights the complexities of operating in Ethiopia’s contested regions.

Ethiopia’s path to stability and growth is fraught with challenges. The Tigray conflict, which saw rebels march on the capital and brought the region’s economy to a halt, may have officially ended, but the country remains deeply fractured. Today, the most pressing threats to Ethiopia’s long-term stability stem from ongoing clashes between the state and ethnic militias in the Amhara and Oromia regions. These armed groups are not only waging insurgencies but are also driving a surge in kidnap-for-ransom cases, which have repeatedly targeted foreign-owned companies.

Militants are increasingly targeting Ethiopia’s critical infrastructure, including major roadways leading to the port of Djibouti—the country’s primary trade artery. The Oromia region, which encircles the capital, Addis Ababa, has become a particular hotspot for such attacks. For foreign businesses seeking to capitalize on Ethiopia’s push to expand its mining industry, the risks are growing. Companies operating in or near the capital, especially those perceived to have ties to the central government, are increasingly vulnerable to attacks by armed groups, according to WTW.