Ethiopia: MPs Seek Change to Mining Law for More Regional State Equity

Ethiopian lawmakers are seeking changes to the draft mining law to increase the share of equity that regional states receive from mining permits and revenues of mining firms.

The move comes as MPs, pundits and right groups push for greater regional state participation and ownership in the mining sector.

The draft law, which is under scrutiny, has faced criticism for not doing enough to ensure that local communities and regional states benefit from mining activities.

MPs demanded for the enhanced participation of regional states in the mining sector and provide them with a fair share of the revenue generated from mining operations.-

The proposed “Mining Resources Development Proclamation” draft outlines that any holder of a mining license must provide the federal government with five percent equity in their mining investments at no cost.

Similarly, regional states where mining operations take place will receive a two percent equity stake at no cost.

Nonetheless, MPs have recently highlighted the inadequacy of the regional states’ equity share during a parliamentary session. They have called for an increase in the equity share to ensure that regional states benefit fairly from mining activities.

Meseret Zelalem (PhD), a member of parliament, stated, “The draft has to be prepared to help the larger public who are giving their land for mining exploration,” adding, “The amount is insignificant and must be revised.”

MP Ashine Asten concurs.