An Overview of the Legal Regime Governing Minerals in Ethiopia

Abstract

The contribution of the mining sector to the Ethiopian economy has been dismal. This situation is being reversed with the mining sector’s contribution to the Ethiopian economy growing significantly in recent years reflecting the sector’s potential to spur the economic growth of the country. Many factors including the legal reforms that have taken place over the last two decades played major roles for the growth of the mining sector’s contribution to the Ethiopian economy. This article addresses the current legal framework governing minerals in Ethiopia. It examines the extent to which the laws try to strike a balance between rights of investors and the public interest with a particular focus on social and environmental considerations. The overall examination and analysis reveals that while the legal reforms have undergone substantial transformation to allure investors in the sector, some problems related to implementation of rights and obligations remain a concern. Moreover, social and environmental considerations are also poorly addressed.