Towards the development of the local content policy framework for Ethiopia’s mining sector

The main objective of the study was to develop a framework for designing and implementing local content policies in Ethiopia driven by the mining sector. The Ethiopian government’s vision is to transform the country into a lower middle income industrial economy by 2025. To achieve this, the economy would need to maintain real GDP growth rates of about 11% per annum, while the extractive sector would need to develop at 32.8% annually. Ethiopia is rich in both precious and industrial mineral deposits which have not as yet been sufficiently harnessed to national advantage. This ambitious transformation calls for mining to play a seminal role in productivity growth in the industrial sectors, mainly agriculture and manufacturing, by exploiting its mineral resources more fully. The second Ethiopian Growth and Transformation Plan (GTPII) seeks to raise the contribution the mining sector makes to Gross Domestic Product (GDP) from the current 2% to 10% by 2025. To this end, the Government has prioritised local content (LC) development as an integral part of its growth and transformation plans.