Ethiopian Business Review

Samson Hailu

Samson Hailu

Editor-in-Chief

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Gold Rush: Did Ethiopia Dig Into Mining Too Soon?

Wednesday, 15 January 2014 12:00 Published in Investment

People have known that Ethiopia had huge mining potential ever since mineral prospecting began around the end of the 18th century. It was not until 1968 that mineral exploration began when the Ethiopian Geological Survey (EGS), which worked under the auspices of the Department of Mines and Energy, began to survey geological and mineral reserves. 

Although water supply service has a long history in Addis Ababa, going through an entire week or even a month without water has become common in many areas of the city. This is despite the announcement by City Administration that water coverage in the metropolis now stands at 97Pct. A close investigation of the issue, however, reveals that close to 37Pct of the water produced and distributed currently is lost before reaching residents. Samson Hailu, EBR’s Research Editor, shows the implication of the loss for the city’s current water crisis.

At the end of the 2008/09 fiscal year, for the first time in Ethiopian history, agriculture gave way to service as the biggest contributor to the nation’s Gross Domestic Product (GDP). Experts argue this was unhealthy because economic theories suggest a healthy structural transformation of a growing economy shifts focus from agriculture to industry and then to service. That was why the service sector’s extraordinary growth was like “putting the cart before the horse”. Accordingly the administration of the late Prime Minster Meles Zenawi took a series of policy measures to adjust the growing economic imbalance. Samson Hailu, EBR’s Research Editor, writes about the implications of these policy measures for the current business slowdown in the country.