Currently Ethiopia faces bigger challenges in which it had ever experience in its long history. However, the country has never lost any hope to get solution and the people also remain optimist.
The war ignited by the junta and going on in the northern parts of the country threatened the nation security and incurs huge economic damage. Infrastructures such as schools, clinics, hospital and bridges are demolished by the rebels.
Cattle and other assets are also either looted or destroyed. Innocent civilians were also murdered and women are rapped.
It is not ended here, both internal and external enemies engaged in destructive endeavor to dismember the nation from the world map. They made economic sabotage for long through illegal trade, money laundering and arm smuggling and hurting the lively hood of citizens through inflated Birr- Dollar exchange rate.
Taking the out brake of the war as good opportunity to prop up their interest, the western world put pressure through economic sanctions.
A simple illustration might be that the cancelations of Ethiopia from AGOA agreement in which enable Ethiopia to enjoy tax free textile product export to the US market.
The international financial institutions also showed reluctance to finance some projects which are undergoing in Ethiopia by pretexting the government measure to contain the Junta military activities as posing of violation of human rights.
These exemplify how internal and external forces align themselves together to put the nation in the mayhem.
To with stand such multifaceted pressure, the government and people of Ethiopia stand together. The people from all walks of life have been showing their solidarity by contributing whatever they have through supporting the government war efforts intended to root out the junta mercenaries.
Despite the fact that the country is under various challenges, the government hasn’t stopped to put the country’s economy forward by creating different opportunities to local and foreign investors. The government strives to make rooms for people who have interest to invest their assets through the provision of various incentives.
One of the economic sectors which registered a success story is mining . It is true that the country have immense natural resources like gold, tantalum, potash, gemstones, iron ore and various industrial, energy and construction minerals, and many more. Starting from the past three years, the mining sector has scored major achievements. The country has also taken various directions to make the sector robust and generate income in which the country critically needs.
According to the Ministry of Mine report, the country has earned half- a billion US Dollars in the current fiscal year from gold export. The nation has exported more than 6500 kg of gold in the first ten months of the fiscal year. The report also showed that the gold mining sector has created job opportunity for more than 90000 citizens.
Based on the National Bank of Ethiopia first quarter report of the year 2020/2021, Export earnings from gold increased significantly by more than 32 fold on annual basis mainly as a result of 241.8 percent increase in export volume and 106 percent in international price.
As a result, the share of gold in total merchandise export significantly increased to 24.4 percent from 0.9 percent of last year’s first quarter.
In addition, the fourth quarter report of National Bank of Ethiopia indicates that, Export earnings from gold went up 30.6 percent year-on-year mainly as a result of 26.0 percent increase in export volume and 3.7 percent in international price. Hence, the share of gold in total merchandise export slightly rose to 18.8 percent from 18.0 percent last year same quarter.
To boost the sector recently, the Council of Ministers has licensed four large- scale gold mining companies that requested to extract gold reserved in two regional states, Gambella and Benshangul Gumuz.
Though there is promising situation in the sector however, the ministry will never tolerate companies which got license and fail to begin exploring the mine and recently cancelled the license of 27 mining companies.
The ministry was quoted: “Following the re-investigation, 27 mining companies that had been licensed to operate in the mining sector but failed to enter operation have had their licenses revoked and three miners have been immediately warned to correct their mistakes.” This act uplifts the number of cancelled licenses up to 90.
The government has taken major reforms in the past three years to build a home- grown economy. In order to achieve its goals, the Ministry of Mines and Petroleum launched Ethiopia’s first online, public accessible mining cadaster portal system through the partnership with CIRDI (Canadian International Resources and Development Institute) which is financially supported by Global Affairs Canada.
This system will bring various benefits to the ministry. According to the report from Trimble, the system is important to recognize the importance of establishing accountable and well functioning systems. The portal will enable the mining and exploration companies conduct their operations remotely, from any country in the world. Investors will hugely benefit from the upgraded license application functionalities and the most up-to-date licensing information will be availed for each region.
According to a report from a local media, a large-scale mining license is granted to a company called ALGHAITH ALQUBAISI, which will be the first company in Ethiopia with a large-scale mining license to extract the bromine mine reserve located in Afar Regional State. The company has applied for a license to produce bromine and chlorine, which are mainly used to produce caustic soda and other minerals such as hydrochloric acid and sodium hypochlorite.”
Furthermore, reports have showed that the ministry has been taking actions to create opportunities. For instance, the country has exempted royalty payment for traditional and small- scale miners. Takele Uma, Minister at Mines and Petroleum Ministry, mentioned that traditional gold miners have supported the economy for years. The government is ready to take measurements on illegal actors.
In addition, the ministry has worked with different stakeholders and development institutions including: The Western Australia School of Mines, Colorado School of Mines, United Nations Industrial Development Organization (UNIDO), African Development Bank (AfDB), Intergovernmental Forum (IGF), and Curtin University and Tulu Kapi Gold Mines Company.
To wind up, it is true that the country has encountered different obstacles. These challenges have major impact on the overall development of the country. However, the people and the government have done a lot to resist the pressure from different corners. There is always a way for good. As the economy is the key for the wellbeing of the nation, the government should find a way to overcome the pressures. Like before, when one door is closed, many more will be opened.
BY DANIEL ALEMAYEHU
The Ethiopian Herald 18 November 2021
