Review of
Public Administration and Management
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Review Pub Administration Manag, Vol. 9 Iss. 6 No: 291
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ISSN: 2315-7844
OPEN ACCESS Freely available online
Towards Socially Responsible Mining Investment in Ethiopia: Imagining a
New Moral Economy
Wakgari Kebeta Djigsa*
Community Services and University-Industry Linkage at Wollega University School of Law, Ethiopia
ABSTRACT
Ethiopia is a home to untapped mining potential. Mining can do more than create wealth: it can contribute to
the well-being of a whole country. On the contrary, unregulated mining investment could also result in unwanted
consequences. Currently, in Ethiopia, the number of human rights violations is growing exponentially, particularly
in relation to mining operations and extractive projects. Mining companies usually fail to respect the internationally
accepted human rights and protection standards. This paper examines how the existing laws, policies and institutional
frameworks of Ethiopia are promoting socially responsible mining investments in light of the recognized standards
for local community welfare, occupational health and safety performance, discriminatory hiring and promotion
practices with respect to race or gender, and labor disputes. In so doing, it relies on both primary and secondary
sources of data. The primary sources of data are domestic and international laws relevant to the mining sector whereas
the secondary sources are policies, governmental and non-governmental reports and literatures in the field. It finds
that none of Ethiopia’s mining legislation has provisions addressing employment benefits, training opportunities,
or social benefits of local communities from the mining operations. It adds that the existing legislations are also
not implemented as needed. Accordingly, it recommends that Ethiopia should adopt proper legal, policy and
institutional frameworks in order to curb the negative impacts of mining investments. It also calls for broad-based
participation and social awareness programs so as to build the sense of ownership in local communities.
Keywords: Ethiopia; Investment; Mining; Socially responsible investment; Sustainable development
INTRODUCTION
Investment plays a pivotal role in ensuring a country’s economic
growth and development. Even if its share in the Ethiopia’s Gross
Domestic Product is far from being significant, there are some
progresses in creating job opportunity, increasing foreign currency,
and facilitating technology transfer, among others. Apart from
the positive effects that came with the promotion and protection
of investments, there are also numerous challenges that are
attributable to irresponsible investments. In particular, the country
is witnessing various sorts of human rights violations, pollution
including water, land, air and sound pollution and many more.
Besides, the working conditions of workers engaging in the sector
is also below the minimum standards set under international legal
instruments to which Ethiopia herself is a party and other domestic
laws. As a result, the attitude of the society and the government
towards investment activities is changing rapidly. Numerous
investment projects that would have contributed to the country’s
move towards transformation to industrial-led economy were
destroyed as a result of peoples’ discontent with the projects.
Lax investment regulation may result in harmful effects that may
justify intervention. The World Commission on Environment
and Development (WCED) suggested as far back as 1987 that
“economics and ecology can interact destructively and trip into
disaster.” The Bhopal catastrophe of 3
rd
December 1984, which
happened right after the 1970s Indian government’s policy to
encourage foreign companies to invest in local industry, best
illustrates this scenario. In that industrial incident, more than forty
tons of methyl gas was leaked from a pesticide plant in Bhopal,
India and immediately killed at least three thousand eight hundred
people and caused significant morbidity and premature death for
many thousands more [1-3].
This paper aims at revisiting the legal and policy frameworks
regulating mining investment in Ethiopia. It examines the
interaction between mining investment and sustainable
development, i.e., how should the mining sector be regulated in
order to contribute its part to the country’s journey towards a
development that works for all.
Correspondence to: Wakgari Kebeta Djigsa, Researcher and Associate Dean for Community Services and University-Industry Linkage at Wollega
University School of Law, Ethiopia, Ph. No +251917049890; E-mail: wakgarikebeta@gmail.com
Received: January 27, 2021; Accepted: June 21, 2021; Published: June 29, 2021
Citation: Kebeta Djigsa W (2021) Towards Socially Responsible Mining Investment in Ethiopia: Imagining a New Moral Economy. Review Pub
Administration Manag, 9: 291
Copyright: © 2021 Djigsa WK. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits
unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.