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 spurthe 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 themining sector’s contribution to the Ethiopian economy. This article addresses thecurrent legal framework governing minerals in Ethiopia. It examines the extent towhich the laws try to strike a balance between the rights of investors and the public interest with a particular focus on social and environmental considerations. The overall examination and analysis reveal that while the legal reforms have undergonea substantial transformation to allure investors in the sector, some problems related to the implementation of rights and obligations remain a concern. Moreover, social andenvironmental considerations are also poorly addressed.