BY GETACHEW MINAS
Studies indicate that opal was first discovered in Ethiopia in the mid-1990s. These opals were initially found to be of low quality as compared to the Australian opal, which had dominated the world market for a long time. A second large-scale opal variety with beautiful color variations was discovered in 2008. This was known as the Wello opal, which was found to rival or even surpass the Australian opal in terms of quality. It quickly dominated opal export from Ethiopia to major manufacturing and consumer markets.
Most of the colored gemstone mining in Ethiopia, and around the world, is performed by miners in the artisanal and small-scale mining (ASM) sector. According to Y.K. McKay et al the miners use rudimentary technology, such as picks and shovels, to mine for minerals that are typically found in shallow deposits. In Ethiopia, opal mining is performed solely by “small-scale” miners. It is a source of employment for thousands of workers. In the past, it was proposed to introduce a law that would prevent the export of rough opals out of country. All opals would instead have to be cut and polished to add value prior to their export.
The export of rough opal to be manufactured overseas was limiting growth opportunities in the domestic mining sector. It would undermine country’s goal of earning foreign currency reserves. Moreover, the inability of many exporters to access the necessary finance to establish robust mineral businesses was an obstacle. The shortage of personnel trained in gemstone mining to provide exporters with the necessary workforce was also an impediment. The long time required to develop highly skilled personnel particularly at a time when they have to be internationally competitive against established competitors deserves recognition.
The shortage of skills for engraving, cutting, or polishing gemstones, including opal, has to be addressed if Ethiopia is to compete in the international market. Value is added to raw opal if it is treated by skilled engravers and cutters. The poorly cut opal of Ethiopia may not fetch higher prices at the international market. It may earn even lower prices if not properly managed in all its chain of production and marketing at all levels. Professionals, including McKay, believe that the concerned public and private sectors are not doing enough to enhance the development and promotion of domestic and external opal businesses. The government is still struggling to control smuggling rough opals out of the country through its “porous” borders.
There could be inbuilt incentives in the production and commercialization of opal. Exporters may be encouraged to export a certain percentage of opal as polished and the rest in a raw form. The ratio of polished to raw opal export may be increased as more experience is gained in the field. This may increase the amount of foreign exchange earnings from the export of opal. This strategy depends on the recognition given to the importance of the gemstones sector for the economic development of Ethiopia. External assistance may be solicited to investigate and learn about the present state of the sector and its probable contribution to the total production, employment and tax revenue and foreign exchange generation to the country.
The present state of the mining industry needs to be studied in terms of commercial and social development of Ethiopia. It is also useful to learn about the features of the industry and its governance as factors that are inducing or limiting its commercial success. It is also crucial to learn lessons from what other gemstone producing countries around the world have done to commercialize the sector. A clearer understanding of the commercial realities of this sector and how it is governed will improve the Ethiopian government’s ability to it realize its objectives in gemstones development.
Given its dominance in colored gemstones in Ethiopia, opal has to be closely monitored to prevent any obstacles to its quality and quantity. Research need to be conducted on its availability and utilization in support of the economy of the country. Information obtained from such a research may ensure the resilience of gemstone in competitive markets at home and abroad. It may also form the basis of a new strategic plan for the sustainable development of the gemstone sector. However, such a research may be conducted in consultation with all relevant stakeholders. The concerned agency may also revise its plan for the development and utilization of the gemstones, including opal, on the basis of latest information of production and marketing situations.
Information on gemstones is obtained from domestic and external sources. These sources include analysis of expert reviews, including site visits within the country and abroad. The experience of gemstone producing countries provides valuable information for the development of the sector. In learning from the experience of other gemstone producing countries is of the essence as it reduces repeating the same mistakes others had committed. In fact, experience sharing promotes the capacity to produce and commercialize gemstones from which Ethiopia benefits immensely. It reduces wastage of resources and time to learn properly from the errors committed by others. But, this demands the support of highly qualified and skilled persons in the field.
Preliminary studies indicate that the Ethiopian colored gemstone sector has enormous potential, but its growth and efficiency are being “constrained” by numerous challenges throughout the supply chain. To resolve these problems, serious research work has to be conducted that provides probable solutions to challenges faced. Also findings on Ethiopian colored gemstone are useful as inputs to policy, programs and projects related to the sector. A typical supply chain of gemstones in Ethiopia, for example, is found to be: Miners’ Association, Brokers, Gemstone Processors and Promoters. This is likely to be a short version of the reality, as it excludes domestic and external traders.
Studies found that “opal miners” faced shortage of mining tools and equipment. For them the tools are more crucial than mining skills and techniques. They are also more concerned about exposure to significant health and safety risks. The miners also faced problems of self-financing and took their own business risks. Similarly, some rough-opal brokers expressed a desire to broker in cut and polished opal.
The Ethiopian Herald February 17/2021
