"More than 55 bodies have been found from the landslide," a statement from the Gofa Zone Communications Affairs Department said, quoting local chief Dagmawi Zerihun, who warned "the death toll could yet increase."
The landslide occurred around 10 am (07:00 GMT) following heavy rains in the remote region, Dagmawi said. He added that the search for survivors was "continuing vigorously."
The area has experienced tragic landslides previously, with at least 32 people being killed in 2018 after two separate landslides within a week of each other.