World Bank highlights need for mining-focused civil societies in Ethiopia

Kirsten Hund, Senior Mining Specialist at the World Bank
Photo: www.newbusinessethiopia.com

Kirsten Hund, Senior Mining Specialist at the World Bank

As Ethiopia expands investment in the mining industry issuing some 200 exploration and production licenses so far, the World Bank highlighted the need for civil societies that understand the mining sector of the country and address the local communities’ voices.

Civil society’s knowledge and understanding of mining, and its various implications, is rather limited in Ethiopia, according to ‘the Bank’s report, ‘Strategic assessment of the Ethiopian Mining Sector’, launched at the joint meeting organized by World Bank and Ministry of Mines of Ethiopia. 

“…Thus activities that strengthen either formal NGO/CSOs, or that target more informal and traditional local organizations, are needed. This is to ensure that the voice and concerns of local communities may be articulated, expressed and considered in the development of future mining policy as well as any future mining and explorations projects,” the Bank said in the report revealed on October 7, 2014.   

It further stated that social mobilization and dispute resolution is an important to ensure that local communities do not unnecessarily bear the brunt of extractive industry operations. Under the work plan for preparation for the candidacy to the Extractive Industries Transparency Initiative, the Ministry of Mining of Ethiopia is working with civil society organizations to promote social mobilization and awareness among civil society members for the mining sector.  

Ethiopian government aims to build and develop large scale mineral sector. It envisages making the sector backbone of the economy by 2020 boosting its currently less than 2% contribution to GDP to 10%, while increasing the now less than $700 million export earnings by ten-fold.   

Over a couple of years before 2010, export revenues from the mineral sector of Ethiopia averaged around $135 million and it increased to $618 million (19%) of the country’s exports in 2011/12 fiscal year. Of this income gold generated close to 100% of the mining sector exports with 2/3 of this gold coming from artisanal mining.  

Ranging from gold, tantalum and gemstones to other industrial minerals, Ethiopia has listed the presence of over 875 mineral resources in its territories in SIG Afrique mineral resources database 

In addition, oil and gas exploration companies around the borders of Somalia, South Sudan, and Kenya among others have continued exploration. Though it has been reported  that the country has reserve of 4.3 trillion gas in Calub area, no company has started production so far. 

"The fact that Ethiopia choose to primarily develop other economic sectors and has not yet started oil production focusing on extractive industry is good and gives the country the opportunity to learn from others as these minerals are not always blessing and often turned to a curse for some countries," says Kirsten Hund, Senior Mining Specialist at the World Bank.  

In 2011/12 fiscal year, the sector contributed about 1.5% to GDP of the country. At the moment over 70% of the total land of the country is under exploration.

Source: www.newbusinessethiopia.com