Ethiopia’s attains lowest standing in the 2017 Resource Governance Index (RGI)

28 Jun

Posted by The Ethiopia Observatory (TEO)

The Natural Resource Governance Index (RGI), according to its authors, is the metric measuring how the known resource-rich nations govern their oil, gas and mineral wealths.

The index composite score is made up of three components and aims to:

    (a) Assess characteristics of the extractives sector;

    (b) Look into a given nation’s value realization and revenue management performance; and,

    (c) Capture essence of the broader context of governance, especially the policy environment

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In the 2017 RGI, with a score of 40 out of 100, Ethiopia has been ranked 57th among 89 nations. This poor performance, the Index statement attributes to: (i) a poor enabling environment that is ranked 63rd, with a score of 37 out of 100; (ii) In revenue management, Ethiopia’s score of 38 out of 100 is rated poor. (iii) In value realization terms, the country’s score is 46 out of 100, which comparatively is considered weak.

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2017 Natural Resource Governance Index data

We are informed that the above three overarching dimensions of governance consist of 14 subcomponents, which comprise 54 indicators calculated by aggregating 133 questions and external data to give a summary picture of a given nation’s performance and internal situation.

The composite result for Ethiopia in the 2017 RGI is average, with a score of 40 out of 100.

Meantime, RGI information that the Adola Gold Mine is owned by the Ethiopian state is incorrect. The TPLF regime had sold it to Sheik al-Amoudi years ago, depriving the country huge resources. At the moment, as would any businessman, gold extracted from Ethiopia is not brought to the market unless the owner has enssured he would make more money getting with rising market values:

Surely, the point RGI makes about lack of transparency or the shenanigan regarding the legal the requirements about the Adola Gold Mine operation is correct. This can be seen especially through its ties to the country’s top leadership. Moreover, its ranking on the Index and also of its corruption-infested operation as the 20th of 22 SubSaharan African nations speaks for itself!

Of that, RGI states:

“Little information about legal requirements or practices of [Adola Gold Mine] is disclosed, and the status of operations of the company remains largely unknown, resulting in poor and failing scores in most indicators.”