2016年-世界发展银行全球_Ethiopia_Mining_Sector_Development___Policy_and_Legislative_Options_Report_184页_3mb

Ethiopia Mining Sector Development: Summary of Policy and Legislative Options Report

Core Content

This report outlines the policy and legislative options for the development of Ethiopia's mining sector, with the aim of achieving the ambitious target of contributing 10% of GDP by 2025 under the second phase of the Growth and Transformation Plan (GTP). Ethiopia currently contributes 1.5% of GDP from the sector, indicating the need for significant growth and reform. The report covers key areas such as exploration and mining rights, fiscal policies, employment and local content, geo-data management, investment promotion, environmental management, social issues, and institutional aspects.

Main Views and Key Information

1. Introduction and Purpose

• The report evaluates policy options to help the Government of Ethiopia realize the sector's potential.
• It is based on a comprehensive analysis of existing policies, stakeholder input, and field missions.
• The report includes recommendations for both policy and legislative reforms, with a focus on attracting investment, improving governance, and managing social and environmental impacts.

2. Identification of Priorities

• Draft Mineral Policy (2008): Highlights the need for private sector-led development, favorable fiscal regimes, and integration with the broader economy.
• Strategic Assessment (2013–2014): Emphasizes the importance of a clear legal and policy framework, a modern mining cadastre, and capacity building for both government and private sector.
• Stakeholder Engagement: Encourages early and inclusive engagement with communities and emphasizes the need for transparency and accountability.

3. Exploration and Mining Rights

• Licensing Regime: Recommendations include simplifying the process, applying the 'First-Come-First-Served' (FCFS) principle more rigorously, and using standardized Mining Development Agreements (MDA).
• Exclusivity of Rights: Suggests measures to prevent overlapping licenses and ensure efficient use of exploration rights.
• Institutional Arrangements: Proposes a hybrid system where agreements are phased out in favor of legislation and detailed regulations.

4. Fiscal Policies

• Tax Regime: Recommends a review of the 5% free share and reducing delays in VAT refund disbursement.
• Mineral Income Tax: Advocates for separating minerals and petroleum in the Income Tax Proclamation and using the Minerals Income Tax Proclamation as the basis for the mining section.
• Revenue Sharing: Calls for better coordination between federal and regional governments to ensure equitable distribution of tax revenues.
• Tax Administration: Highlights the need for improved tax administration and audits.

5. Employment, Local Content, and Downstream Processing

• Employment: Emphasizes the need for prioritizing Ethiopian nationals in employment and enhancing vocational training.
• Local Content: Suggests promoting backward linkages and local participation in the value chain.
• Downstream Processing: Encourages increased value addition in the domestic market and the development of multi-use infrastructure with private sector support.

6. Geo-Data Management

• GSE Role: The Geological Survey of Ethiopia (GSE) should enhance its role in providing geo-data and promoting investment.
• Standardization: Advocates for standardized data submission from exploration license holders to the government.
• Online Access: Suggests improving the MoMPNG website to include geo-data and cross-referencing with other sector legislation.

7. Investment Promotion

• Strategy Development: Proposes the establishment of a dedicated office within MoMPNG for promoting investment.
• Events and Collaboration: Recommends participation in international investor events and collaboration with the Ethiopia Investment Commission.

8. Environmental Management

• Policy Update: Calls for updating environmental policies and developing national environmental standards.
• ESIA and ESMP: Recommends the creation of specific guidelines for Environmental and Social Impact Assessments (ESIA) and Environmental and Social Management Plans (ESMP).
• Mine Closure Plans: Requires mine closure plans at the licensing stage.
• Regular Updates: Suggests regular updates to ESMPs based on environmental and social audits.

9. Social Issues

• Community Development: Encourages the development of a National Corporate Social Responsibility (CSR) policy.
• Stakeholder Engagement: Recommends early and inclusive engagement with communities.
• Occupational Health and Safety: Calls for legislative clarity and the establishment of directives for managing health and safety, especially for underground and artisanal mining.

10. Artisanal and Small Scale Mining (ASM)

• Legal Framework: Notes that the current legal framework is fit for purpose, but the non-renewal of Artisanal Mining (AM) licenses and the hierarchy favoring Large Scale Mining (LSM) should be reconsidered.
• Credit Access: Suggests improving credit access for ASM through the use of future sales revenue as collateral.
• Value Addition: Recommends increasing the ratio of cut or polished stones to total exports in the gemstone sector.

11. Institutional Aspects

• Decentralized Management: Advocates for a decentralized approach to managing the mining sector, with regional offices and a consultative forum for coordination.
• Capacity Building: Highlights the need for improved capacity at both federal and regional levels.
• Specialized Agency: Suggests separating the licensing and inspection functions of MoMPNG into a semi-autonomous agency, similar to ERCA.

12. Conclusions and Recommendations

• Exploration and Mining Rights: Recommend a hybrid system with phased-out agreements and more standardized MDAs.
• Fiscal Policy: Recommend a review of the free share and VAT refund process.
• Employment and Local Content: Recommend vocational training, skills inventory, and local content promotion.
• Geo-Data: Recommend standardized data submission and improved access.
• Investment Promotion: Recommend dedicated investment promotion offices and participation in international events.
• Environmental Management: Recommend updated policies, ESIA/ESMP guidelines, and mine closure plans.
• Social Issues: Recommend a national CSR policy and improved health and safety regulations.
• ASM: Recommend reconsideration of AM license non-renewal and improved credit access.
• Institutional Reform: Recommend a semi-autonomous agency and enhanced coordination.

Actions and Timelines

Key Recommendations

• Simplify and modernize the mining licensing and fiscal regimes to attract investment.
• Develop a National CSR policy and improve community engagement.
• Implement a hybrid system for mining rights and agreements.
• Enhance the role of GSE in geo-data provision and promote investment through collaboration with MoMPNG.
• Improve tax administration and audit mechanisms.
• Strengthen regional coordination and capacity building.
• Promote local content and downstream processing.
• Develop a standardized approach for data submission and environmental management.