From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Mon Jun 29 2009 - 20:16:44 EDT
Africa Blog
African business, politics and lifestyle
June 29th, 2009
Mining and free trade in Eritrea
Eritrea's President Isaias Afwerki has guarded his country jealousy
since independence, pushing a self-reliant attitude that encourages
Eritreans to rebuild Eritrea for themselves.
But in order to develop the potentially lucrative mining and trade
sectors, he will have to open up the country more to foreign money and
therefore possible foreign influence.
The government intends to launch free trade zones at its main ports in
Massawa and Assab on its Red Sea coast, and dozens of firms, including
from China, India and Dubai, have already registered to operate there to
take advantage of the bustling cargo shipping lanes.
Reserves of gold, zinc and copper have been found in Eritrea and
analysts are predicting a mining boom. Fourteen foreign firms are
exploring in the country and the first project is expected to start
producing gold by late 2010.
"We believe mining will play an important role in boosting the economy
and the government is committed to develop it," Alem Kibreab,
director-general of mines, told Reuters Africa Journal.
The authorities want the sector to be developed slowly and carefully to
prevent the so-called "resources curse", where oil and minerals have
spawned and corruption violence in Africa.
After the long struggle for independence from Ethiopia and subsequent
border dispute, expectations for the development of the economy to
support the population of 4 million are high - although Afwerki says the
mining sector is no magic solution.
"Let's not be misled that this gold is going to change everything and
let's not be relaxed," he said. "Getting relaxed and trying to rely on,
or at least anticipating to heavily rely on this resource may be
crippling."
(Photo: Eritrea's President Isaias Afwerki listens to a question during
an interview with Reuters in the capital Asmara. Reuters/Ho New)
http://blogs.reuters.com/africanews/files/2009/06/eritreapres.jpg
<http://blogs.reuters.com/africanews/files/2009/06/eritreapres.jpg>
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