From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Tue Jun 30 2009 - 17:11:30 EDT
Mining and free trade in Eritrea
Posted by: <http://blogs.reuters.com/africanews/author/alisonwilliams/>
Alison Williams
30/06/2009
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Eritrea's President Isaias Afwerki has guarded his country jealousy since
independence, pushing a
<http://www.reuters.com/article/latestCrisis/idUSLL52150> 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
<http://af.reuters.com/article/eritreaNews/idAFLJ06590220090519> 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
<http://af.reuters.com/article/eritreaNews/idAFLJ01335220090519> 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)
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