A new report commissioned by the Embassy of India in Addis Ababa highlights significant export potential for Ethiopian gemstones in the Indian market, while emphasizing the urgent need for investment in local processing infrastructure to fully unlock this opportunity.

Ethiopia, renowned for its rich deposits of opal, emerald, sapphire, and over 40 other gemstone varieties, has attracted growing interest from Indian buyers. However, the report reveals that the country’s gemstone exports remain largely underdeveloped due to the absence of cutting, polishing, and value-addition facilities. In 2022 alone, Ethiopia exported USD4.65 million worth of gemstones to India, with opal constituting over 98% of that trade. The vast majority of these stones were shipped in raw form, resulting in significant lost revenue opportunities and limiting Ethiopia’s competitiveness in the global gemstone value chain.

“Ethiopia’s gemstone potential is exceptionally promising,” the report states. “But without modern processing facilities, much of the value is captured abroad.”

India’s jewelry and gemstone industry, one of the largest worldwide, depends heavily on imports of uncut stones, which are then processed and re-exported globally. As India’s middle class expands alongside rising global demand for jewelry, Ethiopia could emerge as a key supplier—provided it enhances local processing capabilities.

Geologically diverse regions such as Wollo, Tigray, Oromia, and SNNP produce high-quality sapphire, emerald, tourmaline, aquamarine, chrysoprase, and quartz. The study highlights recent discoveries that have increased Ethiopia’s known gemstone varieties to more than 40, many of which align well with India’s sourcing requirements. With targeted investments, the report suggests, Ethiopia could secure a larger share of India’s high-growth jewelry market.

Despite the clear potential, the report identifies several structural challenges. The lack of domestic cutting and polishing centers forces exporters to ship raw stones, missing crucial value addition. Customs and export bottlenecks lead to prolonged clearance times, reducing trade volume and reliability. Additionally, Ethiopia’s inadequate certification systems hinder the ability of its gemstones to meet India’s import standards. Although India’s Duty-Free Tariff Preference (DFTP) scheme offers Ethiopian exporters a zero-tariff gateway to one of the world’s largest gem markets, low awareness among exporters and inconsistent quality control have limited its utilization.

To address these issues, the study recommends a comprehensive approach that includes establishing domestic gemstone processing hubs with Indian technical support, developing traceability and certification systems aligned with Indian import regulations, and encouraging joint ventures and skills exchange programs between Indian and Ethiopian companies. It also calls for streamlining export procedures to reduce bureaucratic red tape and enhance market responsiveness.

The Government of Ethiopia has expressed its support for such measures, recognizing the mining sector’s potential contribution to export earnings and job creation. “Strengthening gemstone exports is not just about trade—it’s about building local industries and creating value at home,” said Ethiopia’s Minister of Mines, Habtamu Tegegne, in the report’s foreword.