ADDIS ABABA – Prime Minister Dr. Abiy Ahmed’s commitment that targets enhancing the efficiency of the mining sector are a good start to solve the nation’s foreign exchange shortage, said experts.
It has been one year since Abiy Ahmed took office and there were lots of changes registered, which made the Country exemplary for the rest of African nations. On his inaugural speech, Abiy has pledged his preparation to sustain economic development, peace and stability in Ethiopia.
Ensuring inclusive participation and benefits of women and the youth in the socioeconomic and political feature of the country, starting peaceful dialogue with neighboring Eritrea and widening political landscape were among the main agendas that he pledged a year ago.
“Even though Ethiopia has abundant natural resources especially, the mining sector which is a key sector for earning foreign currency, the country is not fully utilizing its potential, “said, Dr. Wondaferaw Mulugeta Assistant Professor of Economics at Wollega University.
He also added “since the premier took office, Ethiopia records remarkable changes in many aspects, but much effort remains. To me, the Prime Minister has done his bestlevel and exerted all-rounded efforts to make the country peaceful and prosperous”.
According to him, the country currently earns less than threepercent from mining sector, which is very low and less than what expected from the sector.
The reason why we can’t fully benefit from the sector is because it is high capital intensive. In addition there is lack of infrastructural facilities to connect the resource areas and the industry, noted Wondaferaw. In order to address the foreign currency reserve shortage, the country needs to aggressively utilize its mining sector in particular metal related resources, according to him.
Dr. AtlawAlemu Department Head of Economics at Addis Ababa University for his part told The Ethiopian Herald that foreign currency earning in Ethiopia even today is dependentagriculture and agricultural products. Even the agricultural products were exported without value addition.
“We have abundant natural resources in every sector. But we have not been able to use them appropriately. However, different agro-processing industrial parks are under construction. This is one indication and starting point for better commitment to heighten foreign currency earning” he stressed.
As to him the government is expected to identify the resource that the country have and promote the resource and the area in which the resource were found. “We have to show our potentials for both foreign and domestic investors. In addition, the government is expected to facilitate infrastructural access and create conducive environments for the investors in the areas of mining. Moreover, it is important to create jobs and benefit the society which lives around that area, he noted.
He also indicated, agricultural products take the lion’s share of the country’s export items, which is more than 75 percent of the total and the resources were exported as raw materials without value addition. Meanwhile the Nation can benefit more by adding value to the mining export commodities.
In line with its first year anniversary the Press brief given by Prime Minister is a good thing which is crucial for the economic development of the country and an easiest way for foreign currency earning, as to Wondaferaw.
In his speech, the Premier underlined economic reform is his administrations priority. Ethiopia has been able to secure 13 billion USD from investment loan, aid, remittance, and export over the last seven months, which is not yet done in the history of the country, he said.
The Ethiopian Herald April 6/2019
BY HAILE DEMEKE
