Table of Contents

8.2. MINING ACTIVITY IN ETHIOPIA.............................................................................................................3

8.2.1. Introduction...................................................................................................................................3
8.2.2. Status of the mineral sector investment in Ethiopia......................................................................3
Importance of mining sector in Ethiopia.................................................................................................4
8.2.4 Environmental issue and management related to mining..............................................................5
8.3 FORESTRY..............................................................................................................................................7
Forestry in Ethiopia.................................................................................................................................7
Economic Importance of Forests.............................................................................................................7
8.4 FISHERY................................................................................................................................................10
8.4.1 Introduction..................................................................................................................................10
Fishing Grounds in Ethiopia...................................................................................................................12
8.4.3. Demand and consumption of fish...............................................................................................13
Socio economic contribution of the fishery sector................................................................................14
8.4.4 Constraints and Opportunities of the fishing sector.....................................................................15
Summary...................................................................................................................................................18
Conclusion.................................................................................................................................................18

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 Introduction
Mining, forestry, and fishery represent crucial economic activities that contribute substantially to
Ethiopia's natural resource sector and overall economic growth. This assignment aims to explore and
analyze the mining, forestry, and fishery activities in Ethiopia, focusing on their significance, challenges,
environmental impact, and potential for sustainable development.

In recent years, Ethiopia has witnessed notable growth in its mining sector, with thriving activities in the
extraction of minerals, precious metals, and gemstones. This has sparked national and international
interest, leading to increased investments and efforts to harness the country's rich mineral resources.

Similarly, the forestry sector plays a vital role in Ethiopia's economy, providing resources for both
domestic consumption and export. The country's forests represent an essential ecological asset, with
initiatives in sustainable forestry management and conservation aimed at preserving its biodiversity and
addressing environmental concerns.

In the fishery sector, Ethiopia's diverse water bodies offer opportunities for aquaculture and capture
fisheries, supporting livelihoods and food security for numerous communities. The development of the
fishery industry presents opportunities for economic growth, employment, and food production.

This paper seeks to delve into the intricacies of these three sectors, examining their impact on the nation's
economy, environment, and society. Furthermore, it aims to assess the challenges and opportunities
within each sector, with a focus on sustainability and responsible resource management.

By analyzing the mining, forestry, and fishery sectors in Ethiopia, this paper will provide insights into the
diverse facets of the country's natural resource management, highlighting the significance and
complexities inherent in these industries.

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 8.2. MINING ACTIVITY IN ETHIOPIA
8.2.1. Introduction
Ethiopia's mining industry is a significant contributor to the country's economy, accounting for 1.5% of
its GDP. The nation's mineral wealth is primarily found in the oldest (Precambrian) and sedimentary
(Mesozoic) rock formations. Notable mining operations include the Lege-dembi gold mine, which has an
estimated reserve of 82 tons and an annual production of 3.6 tons of gold. Additionally, the Kenticha
open pit mine produces tantalum and niobium, essential materials for electronic devices, with Ethiopia
currently supplying close to ten percent of the world's tantalum production. Furthermore, traditional
artisanal gold mining has been formalized since the early 2000s, with approximately 1000 kg of gold
purchased annually by the National Bank of Ethiopia, boosting foreign currency generation.

Other significant mineral resources in Ethiopia include soda ash from Lake Abijata, silica sand, kaolin,
quartz, feldspar, and construction materials such as sand, gravel, and scoria. The country's gas fields in
the Ogaden Basin have an assessed potential of 4.6 Trillion Cubic Feet (TCF). Moreover, Ethiopia also
produces platinum from laterite, gemstones like opal, and various decorative and construction materials.

The mining sector's impact extends to local industries, with minerals like limestone, clay, gypsum and
pumice serving as raw materials for cement production. Furthermore, these resources are vital for
construction projects such as buildings, roads, dams, and bridges.

8.2.2. Status of the mineral sector investment in Ethiopia

Ministry of Mines and Energy of the Federal Democratic Republic of Ethiopia is representing the mining
sector development of the country and has the responsibility of issuing license and regulating mineral and
petroleum operation.

The mining laws of Ethiopia have been issued in 1993 and amended recently to attract private sector
investment compared to other developing countries mining code. The mining procedure was also issued
in 1994 and make all licensing and administration procedure as transparent as possible. Various
proclamation were enacted to attract investment and to bring sustainable development of the mineral
industry.

 Mining proclamation for hard minerals.

a) Mining proc.no.678/2010 (as amended)

b) Mining income tax No.53/1993 (as amended)

 Mining proclamation for petroleum operation

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 a) Petroleum operation proc.no.295/1986

b) Petroleum operation income tax .No.296/1986

The main features and issues addressed in the proclamations are encouraging private investment,
guarantee the rights of investors and require environmentally friendly operation. Presently a number of
junior exploration and world class mining companies are operating in the country for different minerals.
These are; the mineral development share company, government organization (EMDSC) established in
2000 is engaged in all kinds of mining. Ezana Mining Development privately owned Ethiopian enterprise
consulting in all aspects related to mining; and the National Mining Corporation, which is set up in 1993
and involved in all faces mineral and petroleum production.

Studies conducted by ministry of mines and Energy shows that mining contributes less than 1% of the
GDP, 14% of export and 1% to the government revenue. The Ethiopian Ministry of Mines and Energy
has vision for the coming 15 to 20 years for the mineral sector to establish diverse, world class and
environmentally sound private led mining industry based on transparent free market principles
contributing not less than 10% of the GDP.

Importance of mining sector in Ethiopia

Ethiopia's mining sector has strong potential to contribute to the country's long term development, social
progress and economic. Currently mining comprise only 1% of GDP, 14 % of export, 1% government
revenue and was able to create 4000 formal job in 2018.

More importantly, it benefits Ethiopian in two sector: Economically and Socially.

A. Economically

 Generates Revenue From Sales, Taxes, Royalty: Federal gov’t has been collecting royalty of
about 4.4 million USD from the large-scale gold production every year. Regional gov’t also
collect royalty from the small scale and artisanal production of precious minerals, industrial
&construction materials.
 Generates Foreign Currency Earnings: About 135 million dollars every year from the export of
gold, tantalite concentrate platinum, decorative dimension stones and gemstones. Such export
contributes up to 7-10 % of the total export foreign currency earnings of the country.
 Employment opportunity: Small employment contribution b/c the mining sector is not a labor-
intensive industry. Artisanal mining on the other hand is likely to involve several hundred
thousand workers.

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B. Social Benefits:

 Expansion of infrastructures (roads, electric power, telecommunication) and social services

(health facilities, schools & school equipment, water facilities & airstrips for the local
communities.
 Train local communities to engage in other form of business such as plantation of coffee and
other trees, irrigation agriculture.
 Promote small entrepreneur’s engagement in the local community services such as hotel, mini-
markets, stationeries, etc.

8.2.4 Environmental issue and management related to mining

It is inevitable that extraction of minerals from the earth leads to disturb the environment. When
disturbing the environment there must be careful and systemic protection of the whole system of
environment that assures sustainable use of the current resource and or ecosystem and that bring about
either less or almost none destruction or pollution of the environment.

Figure 1 Mineral Mining

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There are a Lot’s of issue related with environment ,Such as Deforestation, Degradation Water scarcity
and Erosion.

Figure 2 Deforestation Figure 3 Degradation

Figure 4 Water Scarcity Figure 5 Erosion

Mining in Ethiopia involves environmental issues such as pollution, waste disposal, and land
reclamation. The government aims to encourage responsible mining practices consistent with
environmental laws and regulations. Additionally, there are policies related to industrial waste, energy
resources, and mineral resources. Traditional mining methods such as placer mining, strip mining, and
quarrying are common in Africa. Countries rich in natural resources may face challenges such as poverty,
income inequality, conflict, and corruption.

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 8.3 FORESTRY
Forestry is the science and practice of managing forests, tree plantations, and natural resources within
forested areas. It involves the sustainable management of forests for environmental, economic, and social
benefits. This includes activities such as tree planting, timber harvesting, wildlife conservation, and
ecosystem management. Forestry also encompasses the study of forest ecology and forest management
techniques.

It is related to exploiting forest products which includes gathering of fuel woods, production of timber
and charcoal and construction of houses.

Forestry in Ethiopia
Forestry in Ethiopia is an important sector due to the country’s significant forest resources and the role
they play in the livelihoods of many Ethiopians. The forestry sector in Ethiopia faces various challenges,
including deforestation, degradation of natural forests, and unsustainable land use practices.

Some key importance of forestry in Ethiopia include:

1. Biodiversity Conservation: Ethiopia is known for its rich biodiversity, including unique flora and
fauna. The country has several national parks and protected areas aimed at conserving its diverse
ecosystems.

2. Sustainable Wood Production: The forestry sector in Ethiopia also involves sustainable wood
production for timber and other forest products, balancing economic benefits with environmental
conservation.

3. Climate Change Mitigation: Forests play a crucial role in mitigating climate change by sequestering
carbon dioxide. Ethiopia’s efforts in reforestation and afforestation contribute to its climate change
mitigation strategies.

Economic Importance of Forests

Even though the importance of forest and forest product is little in earning foreign exchange, their
significance at local level is large. Forests in Ethiopia have significant economic importance, contributing
to the country’s economy in various ways.

1. Timber and Wood Products: Ethiopia’s forests provide valuable timber and wood products,
supporting the construction, furniture, and paper industries. The sustainable harvest and
processing of timber contribute to the national economy and provide employment opportunities.
Timber and wood production.

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 Figure 4 Timber Figure 5 Wood products

2. Non-Timber Forest Products: Forests in Ethiopia yield a wide range of non-timber forest
products such as honey, fruits, nuts, spices, medicinal plants, and fibres. These products are important for
local livelihoods and can also be a source of income through trade and commercialization.

Figure 6 Forest bee keeping Figure 7 Fruits

3. Energy Source: Forests are a crucial source of energy for many Ethiopians, particularly in
rural areas. Wood fuel from forests serves as a primary energy source for cooking and heating, reducing
reliance on other energy sources.

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 Figure 8 Wood as energy source

4. Ecotourism: Ethiopia’s diverse forests and natural landscapes attract tourists interested in
ecotourism. This contributes to the economy through revenue from tourism activities, including
accommodation, guiding services, and related businesses.

5. Carbon Credits and Climate Finance: Ethiopia’s efforts in forest conservation and
reforestation contribute to global climate change mitigation efforts. This can potentially lead to financial
benefits through carbon credit programs and climate finance mechanisms.

6. Employment and Livelihoods: The forestry sector provides employment and income
opportunities for a significant number of people involved in activities such as logging, forest
management, agroforestry, and non-timber forest product collection.

But the economic importance that our country get from forestry is not enough and the commercial
exploitation of forest resource in Ethiopia is still in its infancy stage. This is mainly because of the
following major factors :

1. Rapid deforestation

2. Low demand for timber

3. Lack of modern lumbering technology

4. Inaccessibility of natural forest

In order for forests to contribute significantly to sustainable development, there is a need for countries to
practice sustainable forest management and to adopt an intersectoral approach to optimize benefits from
forests. This would ensure that the goods and services derived from forests meet present-day needs while
at the same time securing their continued availability and contribution to long-term development through

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securing forest resources, maintaining or enhancing biodiversity and water quality, promoting healthy and
vigorous forests in order to provide protection functions, and promoting alternative livelihoods.

8.4 FISHERY
8.4.1 Introduction
Fishery is primarily economic activity of catching, harvesting, and processing fish and other aquatic
organisms from natural or artificial bodies of water, such as oceans, rivers, lakes, and fish farms. It
involves various activities, including fishing, fish farming (aquaculture), processing, marketing, and
distribution of fish and seafood products. Fisheries play a crucial role in providing a significant source of
food, employment, and income for millions of people worldwide. They contribute to global food security,
as fish and seafood are important sources of protein and essential nutrients for many communities.

Fisheries can be categorized into two main types: commercial fisheries and subsistence fisheries.
Commercial fisheries are large-scale operations that focus on catching fish for sale in markets,
restaurants, and supermarkets. Subsistence fisheries, on the other hand, are small-scale operations that
primarily provide food for local communities. This one is used wide in the past history for a very long
period of time. Sustainable management of fisheries is essential to ensure the long-term viability of fish
stocks and the preservation of aquatic ecosystems. Overfishing, habitat destruction, pollution, and climate
change are some of the major challenges faced by fisheries worldwide. To address these issues, various
measures, such as fishing quotas, marine protected areas, and responsible fishing practices, are
implemented to promote the sustainable use of fishery resources.

Figure 9 Fishes as food Figure 10 Fishing

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As we came to our country, Due to the presence of a number of lakes, river and reservoirs rich in fish
resources, Ethiopia has great potential for fishing. However, at present there is no reliable estimate due to
lack of exhaustive and systematic (regular) stock assessment. The total estimated potential yield
calculated from the surface area for major lakes is 60,000 tons per year. However, in the face of the above
uncertainty the potential yield stood between 30,000 and 45,000 tons per year for the main water bodies.

At present in Ethiopia, more than hundred local fish species have been identified. The bulk of the
production is made of Tilapia, Bargus, Clarias and Labeo species. In the two southern Rift Valley lakes,
Chamo and Abaya, Nile Perch is caught in significant quantity. Nile perch is also found in major riverine
fisheries. Moreover, principal physical characteristics and the recent estimate of potential yield of the
main water bodies are presented in the table given below.

Table 1 Estimated fish Resource potential of Ethiopian Lakes

Source: FAO,2015

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 Fishing Grounds in Ethiopia

Fishing is a primary economic activity that involves harvesting of fish resources from water
bodies. Fishing is known to be one of the oldest human activities. Ethiopia's fisheries are entirely
freshwater, in its many lakes, rivers, and reservoirs, which are fertile fishing grounds of the
country. However, fishing contributed only 0.02% to the Gross Domestic Product (GDP) of the
country (Ministry of Agriculture (MOA), 2015).

Most fishing activities in Ethiopia take place in fresh waters, such as rivers, lakes and ponds. In
general, the Ethiopian fishing grounds could be classified as Lakes and Rivers.

Lakes fishery:

The Ethiopian lakes are estimated to cover a surface area of about 7000 km 2. They account about
79 percent of the total yearly fish production of the country. The most important lakes where
much of the fish production comes include Lakes Tana, Ziway, Langano, Hawassa, Abaya and
Chamo. The annual maximum sustainable fish yields of our lake are estimated to be above
35,000 tons. However, presently, only 4,000 tons are produced annually.

Among the 101 species of fish available in the country, 25 of them are commercial fish species
and are found in the lakes, which have high promising potential for the development of
commercial fish industry.

River Fishery:

Most rivers of Ethiopia have high fish resources. However, the fishing potential of Ethiopian
rivers has not yet been fully investigated and known. But according to some references, the
country’s rivers and streams can produce on average about 7,000-10,000 tons of fish annually.

water bodies type Extent (km2) Fishery potential Catch

(tone/year) ( tone/year)
Major lakes 6,477 23,342 10,598
Major reservoir and dams 857 4,399 1,366
Small water bodies 275 1,952 303
Rivers 7,185 21,788 3,121
Total 14,794 51,481 15,389
Table 2 Ethiopian water bodies and their fisheries

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As research done by B. Sal indicate that, in Lake Hawassa Nile tilapia (Oreochromis niloticus)
and catfish (Clariasgariepinus) are the most commercially abundant fish that account 62.5% and
25% from the total catch, respectively. In all fishing area, its production activities is done during
morning, day and at night time with all seasons. At Lake Hawassa, the large amount of fishes
was harvested continuously during rainy season and morning time. Fish species preference was
depending on the availability of species at different water bodies, but as a whole Tilapia, Catfish,
Carp and Carassius carasius were the most preferred fish species successively.

Figure 11 Most landing and preferred Fish Species in different water bodies

8.4.3. Demand and consumption of fish

Fish as a source of human food has a long history in Ethiopia. The consumption of fish in Ethiopia vary
in two ways. The one is from place to place, in big cities and around production areas and towns,
especially in Hawassa, Zeway, Arbaminch, Bahir Dar and Addis Ababa the consumption of fish is
relatively higher than any other area. The second one is season to season, for example in fasting season
the consumption of fish is higher because many fasting people believe that eating fish meats in fasting
season is not prohibited by the religious standards.

The factors which account for low level of local fish consumption are:

1. Fish has not been integrated into the diet of most of the population. Most people in Ethiopia do
not use fish products regularly.
2. Because of religious influences on consumption patterns, the demand for fish is only seasonal.
During Lent, for example, Christians who abstain from eating meat, milk, and eggs consume fish.
As a result the demand for fish is higher than supply during fasting seasons.
3. The limited supply of the product and its high price.
4. Long distance of the fish production sites from densely populated areas and major settlements,
together with its perishability (spoil of fish) and transportation reduce fish consumption levels.

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The rapid growth of population and the progressive shortage of livestock products has changed the
situation to a growing demand of fish. For example, total demand for fish in 2003 was about 67 thousand
tons, which is predicted to grow to118 thousand tons in 2025. This shows that the demand for fish is
showing an increasing trend.

Socio economic contribution of the fishery sector

1. Role of Fisheries in the National Economy in Ethiopia: The fisheries sector in Ethiopia plays a
crucial role in providing income, employment, and food security for the population. This sector
also contributes to the national Gross Domestic Product (GDP) and foreign exchange earnings.
Additionally, it has the potential to attract investments, both local and foreign, which can
contribute to the overall economic development of Ethiopia. Sustainable management of fisheries
resources is essential for the long-term viability of the sector, and policies and institutional
capacity building are needed to address challenges such as overfishing, habitat degradation,
inadequate infrastructure, and the impact of climate change.

Figure 12 Local fishery

Trade: Ethiopia's fisheries sector contributes to trade through both domestic and international markets. .2
By engaging in commercial fishing activities and the export of fish and fishery products, the country
earns foreign exchange and supports the national economy. Additionally, through trade partnerships and
agreements, Ethiopia can enhance its market access and expand its export opportunities for fish and
fishery products, contributing to economic growth and development

Food: Fish is an essential source of animal protein and essential nutrients for many Ethiopians, .3
especially those living in areas where access to other sources of protein is limited. The fishery sector

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plays a vital role in providing this important food source, contributing to the overall nutrition and health
.of the population

Food Security: The development of the fisheries sector in Ethiopia contributes to food security by .4
providing a reliable source of animal protein and essential nutrients for the population. By addressing
food insecurity and malnutrition, the sector plays a crucial role in enhancing the overall food security of
.the country

Employment: The fisheries sector provides direct employment opportunities to fishermen, fish .5
processors, traders, and other related occupations, particularly in rural areas near water bodies. This
contributes to the reduction of unemployment and poverty and supports the livelihoods of many
Ethiopians. Additionally, the growth of the sector can create opportunities for ancillary industries, such as
.ice production, fish processing, and transportation, further boosting economic activity and employment

Fish Meal as Animal Feed Source: The fisheries sector can also contribute to the production of fish .6
meal, which is a valuable source of protein and essential nutrients for animal feed. Fish meal production
supports the livestock industry by providing a high-quality feed ingredient, thereby contributing to the
.overall agricultural and livestock sector in Ethiopia

Sport Fishing as Recreational Value: While not as prominent as other aspects of the fisheries sector, .7
sport fishing can have a recreational value and contribute to tourism and local economies. Sport fishing
activities, if developed sustainably, can attract tourists, create recreational opportunities for locals, and
.generate economic benefits for communities near fishing destinations

In conclusion, the fisheries sector in Ethiopia plays a multi-faceted role in the national economy,
contributing to income generation, employment creation, food security, trade, and the production of
valuable products like fish meal. Policies and investments that support sustainable management,
infrastructure development, and market access are essential for maximizing the potential of the fisheries
.sector and ensuring its long-term contributions to Ethiopia's economic development

8.4.4 Constraints and Opportunities of the fishing sector

There are lots of factors that hinder the growth of the Fishing sector in Ethiopia. These are mostly related
to the Economic state of the country but the lack of access to technological equipment is also a big
problem. Mismanagement of the resource, inappropriate policies and institutions, inadequate technical
and material backup to the sector are also some of the big issues. However, there are also a lot of positive

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outcomes that can be attained by the proper use of this sector. Some of those are economic growth,
improvements in the nutritional and ecological aspects.

Most of the human activities that take place on water bodies have influenced the fisheries. Mineral
extractions, such as the soda ash extraction on Lake Abijata definitely are a major blow to the fishes. The
textile industries in Hawasa and Arba Minch and the waste materials from the Tannery at Koka river also
pose danger on the fishes. In addition, Deforestation, which could go as far as drying up whole water
bodies and Dams, which limit and influence the migration of anadromous fishes are major threats. The
pollution of the water bodies by uncontrolled disposal of solid and liquid wastes is also affecting the
fishes in them.

Figure 13 Hyacinth on Koka river due to Tannery Figure 14 Disposal of waste on Lake Hawassa

In third world countries, the roots to most problems can be traced back to the failure to legislating policies
and forming proper institutions that can enforce those policies. This is very evident in the fishery sector
too. In Ethiopia, the laws and regulations that are in place, are not being implemented in the real world to
a satisfying extent.

The lack of sufficient properly trained human resource also riddles the sector. As mentioned above, there
is also the problem of inadequate financing that goes towards fishery. This prevents the sector from
reaching its full potential and being a competitive force in the modern world.

There are many solutions put forward by researchers to alleviate the current situation in Ethiopia. One is
related to increasing basic demand. The obvious way to do this is by changing the diet of the people
through continuous awareness creating towards the various benefits of including fish in it, proper pricing
for better profit and diversifying the fish species available on the market. Improvement in fishing

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techniques, technology transfer to fishers, training of fishery management personnel, attraction of
financial capital to the industry, fish value chain improvement and aquaculture are the ways to go when it
comes to increment in fish production and thereby contributing to the betterment of the national economy.

Fishing villages, which are basically villages in which fishing is the main industry, help by gathering the
pastoralists together and decreasing the discontinuous nature of the production. There are also reservoir
fisheries which are very sound in terms of investment and profit. Microfinance facilities which have
strong support are especially very beneficial for women and youth. Highly sophisticated understanding of
the matter is not necessary to get into the field at the basic level. The other value good for fish industry is
the non-prevalence of taboos when it comes to fish consumption.

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 Summary
The subjects of mining, fishery and forestry have been discussed briefly in the paper. Mining is one of the
most crucial sectors for the economical state of the country. It also has many social benefits that should
not be understated. Taking this into account, several actions have been taken by the policy makers in
order to take the industry into another level. Despite these works, problems related to mining still
continue to riddle the country.

Forestry as a whole is the science and the practice of managing forests. Most of the activities in our
country, directly or indirectly, still revolve around forestry. Although the immense value of forestry for
Ethiopia, are out there for everyone to see, problems such as deforestation and lack of access to modern
technologies still continue to hinder it from bringing out optimum results on the environment and the
population.

Fishery is an economic activity that includes several activities such as fishing, fish farming (aquaculture),
processing, marketing, and distribution of fish and seafood products. Ethiopia has great potential for the
fishery sector. There are several natural causes that contribute to this fact. Even though this stays true
today, the amount that the country produces is nowhere near it’s true potential. The industry provides
countless opportunities if it’s managed properly and if all the concerned bodies execute their works in a
proper manner.

Conclusion
The contents of this writing indicate toward one main message in sync which basically says ‘Ethiopia has
priceless potential and this can be harnessed through proper management, policy making, environmental
protection and initiative of the population at large.’ The vastness of the natural resources of the country
can not be denied. However, acknowledging this fact is not enough. Every concerned individuals and
groups should act towards making use of every means that can help the country use it’s resources to get
out of poverty.

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 REFERENCES
Geography of Ethiopia and The Horn(September, 2019)

Tesfalidet Bizuwork(May 27, 2022).Tannery waste makes Modjo river lifeless, poses risk to Koka
reservoir. Addis Zeybe. https://addiszeybe.com/tannery-waste-makes-modjo-river-lifeless-poses-risk-to-
koka-reservoir

UNEP.Ethiopia’s forests, an undervalued resource. Africa Renewal.

https://www.un.org/africarenewal/news/ethiopia%E2%80%99s-forests-undervalued-resource

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