Management of Mineral Resources in Ethiopia’s Federal System: Practical Challenges, Institutional Constraints and Constitutional Infringement

Abstract

This article examines one of the critical issues in the governance of mineral resources in federal systems and the Management of the extraction of Mineral resources. In particular, it assesses how Ethiopia's identity-based federal system addresses the management of significant mineral resources in its design and operation. To this end, a qualitative approach that combines a doctrinal legal analysis with grounded empirical research has been employed. Document analysis, interviews, and an interdisciplinary literature review were used to collect data. The results have identified significant legal, institutional, and practical gaps in the management of mineral resources in the Ethiopian federal system. This is a stark contrast between the FDRE Constitution, which recognizes regional states as important actors in mineral resource management, and the subsequent legislative and institutional arrangements that have concentrated power within central agencies, leaving regional governments and local communities out of mining-related decision-making processes. Furthermore, this approach has enabled the Federal Government to create a highly centralized management practice that ignores the specific needs and concerns of subnational actors, as a result of which disagreement and conflict happen several times. The results further reveal that the Federal Government has recently attempted to improve the management of mineral resources, but lacks binding legal authority and strong institutional frameworks. It concludes by noting the urgent need for comprehensive reforms that foster a more inclusive and collaborative approach to mineral resource governance. Ultimately, it made important legal and practical recommendations to improve mineral resource management in Ethiopia's federal system, including restoring constitutional compliance, fostering intergovernmental cooperation, strengthening the capacities of regional government management, and enhancing the participation of local communities.