Appropriate Institutions Fundamental To Exploit Ethiopia’s Minerals Resources, Says Professor Alemayehu

1060

Addis Ababa, November 27/2023(ENA)-Viable institutions with correct incentives structure are relevant to exploit Ethiopia’s mineral resources, according to Professor Alemayehu Geda.

As part of the 2nd Annual Mining and Technology Expo opened by Prime Minister Abiy Ahmed last week, a panel discussion was held today with the objective of promoting the sector. 

It is to be recalled that the government of Ethiopia has given high priority to the mining sector, which had not been given priority until recent time. 

The mining sector has been considered as one of the critical economic sectors of the country as part of reform measures over the last five years.

To this end, the country has also developed a national mining policy to sustainably harness its vast and untapped mineral resources.

Professor Alemayehu Geda at Department of Economics, Addis Ababa University, told ENA that there is a huge potential of mineral resources, but we cannot use it up to now.

Prof.Alemayehu underscored “the fundamental is institutions. Do we have appropriate institutions that allow from exploration to exports? Do we have a correct incentives structure within these institutions? That will allow us to explore that potential," he said.

He pointed out that as it stands now, our export of minerals is like about 12 percent of the total wealth and is very small. And this could double if we correct all the weaknesses we have in the sector

African Minerals and Geosciences Centre (AMGC) Director-General Ibrahim Shaddad on his part elaborated the mining sector is not only the large-scale mining; there are also intermediate scale mining as well as small scale and the traditional mining. 

He added that the center focuses on giving support to the low scale mining as well as the traditional mining.

He suggested the Ministry of Mines to dedicate a specialized mining bank for funding the mining activities of small scale miners and intermediate miners. 

“The center is ready to support in establishment of Ethiopian national center of excellence regarding geoscience and mining. We would like to make it a refine version from the regional center based in Dar es Salaam,Tanzania which is part of Ethiopian asset. We are ready to also provide whatever Ethiopia needs in analysis, consultancy and training,” he said. 

This is a sort of empowerment for our youth and our women in home-based manufacturing and business, he said, adding that each of our member states particularly Ethiopia might be exporting ceramic worth millions of US dollars annually. 

The center is mandated to contribute in the development of mineral resource, Ibrahim said, adding that he is quite pleased from the value addition in gemstone in Ethiopia.

 

 

 

Ethiopian News Agency
2023