BY LAKACHEW ATINAFU
The marriage between human beings and ornaments has not been clearly depicted in known history. However, it is crystal clear that unlike non-human beings son of man shield his /or her body with clothes and garments.
Beyond accustoming to weathers and responding poorly acclimatized to cool, warm and temperate weathers history has it human beings began to dress in clothes and ornaments that dignify and signify their status.
In the concurrent world the cost of gem stones is sky rocketing and countries able to manage the sector are making lucrative business out of it.
Humans pay special attention to jewelry. Jewelry is highly desirable and popular because of its aesthetic value attractiveness and color. People are adorned with them.
They also cost a lot. Ethiopia is also home to some of the world’s finest jewelry. Evidence shows that there are many types of jewelry in different parts of Ethiopia. Although there are indications that gemstones are found in various parts of the country.
The Ministry of Mines, Eng. Takele Uma said Ethiopia has not been able to benefit as much as it should. Only 2317 kilograms of jewelry were exported during the 10 months performance of the year.
The volume of jewelry exported to the over sea market is very small compared to the country’s most valuable jewelry. One of the reasons why the country should not be able to benefit from the minerals is the problems in the production and marketing system.
Most of all, complications related to price, grade and added requirements appeared to be the potential hazard preventing the sector from achieving desired goal.
In recent years, the government has stepped up its efforts to address the issue of jewelry. In a related development, the Minister shared information on his social media page: He said the government has decided to reduce the trade chain and get what Ethiopia deserves from the sector, adding that it has decided to make the trading system market-oriented based on lifting previous government pricing and other criteria.
Economists point out that the decision to allow the trading system to be run solely on the basis lifting of the previous government price and standard, as well as unnecessary requirements, will be crucial for the country to reap the benefits of the minerals.
According to Economist Dawit Teshale, the decision to move the mineral market only through the market system has many benefits. Market-oriented mineral trading encourages free competition among jewelry market participants.
When there is a market competition, the market participants have to follow a very efficient and creative process in order to win the competition. While the government determines the value and status of the jewelry, the success of the actors will remained to the price and status of the government, it is not dependent upon their devotion. They argue that it is not limited to the actors in the industry, which prevents them from exercising their full potential. Nowadays, when the business system is only marketed, the success of the actors in the sector depends largely on the efforts of the actors themselves. The more efficient they are, the more likely they are to be profitable. It motivates them to follow innovative strategies to succeed in the market. They cannot be effective without a creative approach. This will benefit the mining sector as well as the country. The fact that the country has not benefited from the previous system will help to compensate for the loss of the system.
According to Dawit, there should be strategies to make discrepancy to label minerals that should be administered through market oriented system and other systems.
If all jewelry is allowed to be marketed alone, it could have a negative impact on the country’s economy. Minerals, the backbone of the country’s economy, should not be left out of government control. Gold, for example, is a major source of foreign exchange for the country. Gold trading, however, cannot be outside the trading system, because, gold is the basis of the country’s foreign exchange earnings. Gold not only increases the state coffers, but also benefits the amassed.
Government control over the sale of commodities such as gold must be strengthened. Precautions should also be taken to include other precious metals which have not been exploited in the process market orienting.
He further said that it should be noted that the sale of jewelry should be guided only by supply and demand and does not mean that there should be no control.
According to Dawit: The fact that the government has to intervene as a government and refrain from doing business and creating unnecessary obstacles does not mean that it does not have any control over the sector. While market-oriented is considered a good thing, government oversight is also important. Instead of being set free, there must be a governing body. To be marketed only means to depend on supply and demand.
This might also open door to various illegal activities. If left unchecked, traders in the sector could use the foreign exchange they used to sell jewelry for illegal purposes, he said. If controlled, the country could benefit. But if left unchecked, it could be dangerous. In particular, it should monitor the use of funds from transactions in this sector.
Instead of running after problems, it should be considered now; these challenges can only be controlled by a regulatory body, he said. He said there must be an institution for this. In particular, given the current situation in the country, it is more likely to be used for other purposes if it is not properly controlled. The recent steps taken by the government to boost the mining sector are a great opportunity for the sector to contribute to the country’s economy.
The government should continue to take steps to boost the production of minerals, while maintaining the market for jewelry. The problems in the production and marketing of precious metals in the country cannot be solved by simply letting the minerals be marketed.
Stakeholders in the sector need to develop the skills to work together to solve problems in the marketing system. Encouraging stakeholders should be strengthened and strengthening the associations of traditional jewelry manufacturers.
The government must work to alleviate the obstacles faced by the unions. The sector’s problem cannot be solved by leaving the trading system alone in the market.
Since it is a sector that has been plagued by problems for centuries, further action must be taken. It must continue to provide the necessary support, especially to those involved in the sector. The government should provide other support, including facilitating the importation of small-scale production equipment in the sector. Without such support from the government, it will be difficult to get the sector to the desired level. Considering the negative impact on the country’s economy, it would be good if the government facilitates the trade system and the country also earns foreign exchange from the sector.
Since jewelry projects have the potential to create jobs for many job seekers, it is difficult to find minerals only at the national and government levels, so it is important to find projects and work with partners.
Efforts must be made to ensure that international organizations bring their knowledge, money and work ethic and link it to Ethiopia’s human and natural resources. Consideration should be given to prosecuting offenders
Law enforcement action against traffickers must be strengthened. The measures should be able to educate those involved in such illegal activities. In order for the country to benefit from the export of jewelry, it is necessary to train more professionals. The recent opening of some of the mining departments in some universities and the strengthening of existing ones are a good start.
Similar activities should be strengthened at other universities as well. Taking advantage of the recent developments, the sector should focus on adding value to the market, rather than selling it raw. Jewelry must be stopped for sale without the addition of values. Value addition has meaningful contribution to the nation and businessmen. Special attention should be paid to the promotion of Ethiopia’s jewelry and other natural resources to the world. The success of the jewelry industry is not limited to the efforts of the government and the industry. The community is also of great value. Instead of using the jewelry of other countries, the community should use their country’s jewelry to promote it to other countries
THE ETHIOPIAN HERALD SUNDAY EDITION 3 JULY 2022
