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Commercial Potential of Ethiopia's Coloured Gemstone

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Commercial Potential of Ethiopia's Coloured Gemstone An Analysis of the Commercial Potential of Ethiopia’s Coloured Gemstone Industry Commercial Potential of Ethiopia’s Public Disclosure Authorized Coloured Gemstone Public Disclosure Authorized Disclosure Public Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Disclosure Public June 2016 By Dr. Yolande Kyngdon-McKay, Angela Jorns, Barbara Wheat and Tom Cushman, with Public Disclosure Authorized contributions from Anna Barker, Estelle Levin Nally and Sileshi Nemomissa . Yolande Kyngdon-McKay, Angela Jorns, Barbara Wheat and Tom Cushman, with contributions from Anna Barker, Estelle Levin and Sileshi NeMoMPNG issa The Commercial Potential of Ethiopia’s Coloured Gemstone Industry Disclaimer: The findings, interpretations, and conclusions expressed herein are those of the author(s). The findings, interpretations and conclusions expressed in this paper do not necessarily reflect the views of the International Bank for Reconstruction and Development/ The World Bank and its affiliated organizations or the Executive Directors of the World Bank or the governments they represent. The World Bank, and the donors of the Extractive Industries Technical Advisory Facility (EI-TAF) Multi- Donor Trust Fund do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations and other information shown on any map in this work do not imply any judgement on part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/ The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA01923, USA, telephone 978-750-8400, fax 978-750-4470, http://copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202- 522-2422, email: [email protected]. © ESTELLE LEVIN LIMITED ii The Commercial Potential of Ethiopia’s Coloured Gemstone Industry About Estelle Levin Ltd. Estelle Levin Ltd. (ELL) is a specialist consultancy dedicated to responsible mining and sourcing. Working from concept to implementation, in all cases we help our clients transform their ideas, businesses and operations into something more sustainable not just for them, but for their stakeholders too. We provide world-class research, advisory and capacity-building services to leading brands and small businesses from along the value chain (mining, trading, manufacture, retail), governments, aid agencies, and NGOs. We stand amongst the world’s foremost development consultancies with expertise on Artisanal and Small-scale Mining (ASM) and developing highly tailored and context-specific responsible sourcing systems for artisanal minerals, especially from fragile economies. Precious minerals have been a core specialism for ELL since 2004; we investigate the issues, design the initiatives addressing them, educate stakeholders on these, and support companies in implementing precious minerals management systems. You can find out more about us at www.estellelevin.com and www.asm-pace.org. Authorship This report was researched and written by Dr. Yolande Kyngdon-McKay, Angela Jorns, Barbara Wheat and Tom Cushman, with contributions from Anna Barker, Estelle Levin, and Sileshi Nemomissa. Acknowledgements The authors would like to thank representatives from the Ministry of Mines, Petroleum and Natural Gas, the Coordinator of the South Wollo Zone Mining Bureau, the representative of the Delanta Mining Bureau and other officials for their generous contributions to this research, and The World Bank for assisting with the coordination of meetings in Addis Ababa and Kombolcha. We would especially like to thank the local jewellers, lapidaries and exporters in Addis Ababa, the Dean of the Polytechnical College in Kombolcha, the lapidaries, brokers, and miners in Kombolcha and Delanta, the international gem traders in Hong Kong and Bangkok, and all of the gem industry stakeholders in Afghanistan, Australia, Brazil, Madagascar, Nigeria, Sri Lanka and Tanzania who donated their valuable time to our research. We would also like to thank the following country experts for generously donating their time to reviewing select case study analyses: Christopher Prior (Afghanistan); Stuart Pool (Sri Lanka); Ruy Lima (Brazil); and Patrick Ojeka (Nigeria). Sincere thanks to Felix Hruschka for reviewing the final report on behalf of The World Bank. Disclaimer from Estelle Levin Ltd. This report is prepared from sources and data that Estelle Levin Limited believes to be reliable, but Estelle Levin Limited makes no representation as to its accuracy or completeness. The report is provided for informational purposes and is not to be construed as providing endorsements, representations or warranties of any kind whatsoever. The authors accept no liability for any consequences whatsoever of pursuing any of the recommendations provided in this report, either singularly or altogether. Opinions and information provided are made as of the date of the report issue and are subject to change without notice. © ESTELLE LEVIN LIMITED iii The Commercial Potential of Ethiopia’s Coloured Gemstone Industry About this report This is the final iteration of this report. It is our understanding that it will be used by The World Bank and Ethiopia’s Ministry of Mines, Petroleum and Natural Gas to help inform their strategies for developing Ethiopia’s coloured gemstones sector. Cover Photos – ©Estelle Levin Ltd, photo credit Yolande Kyngdon-McKay: a woman polishing Ethiopian green amber; and an assortment of low-grade, polished Wello opal, Addis Ababa, Ethiopia, 2015. © ESTELLE LEVIN LIMITED iv The Commercial Potential of Ethiopia’s Coloured Gemstone Industry Contents Contents........................................................................................................................................................................v Acronyms and Abbreviations ....................................................................................................................... vii Executive Summary .............................................................................................................................................. ix 1. Introduction ...................................................................................................................................................... 1 1.1. Background ................................................................................................................................................................. 1 1.2. Purpose of Report .................................................................................................................................................. 9 1.3. Research approach / methodology ......................................................................................................... 10 1.3.1. Scope ...................................................................................................................................................................... 13 2. Commercial Situational Analysis ........................................................................................................ 14 2.1. Supply Chain ........................................................................................................................................................... 14 2.2. Value Chain and Commercial Challenges ............................................................................................ 15 2.2.1. Overview ............................................................................................................................................................... 15 2.2.2. Miners ..................................................................................................................................................................... 16 2.2.3. Gemstone Brokers .......................................................................................................................................... 18 2.2.4. Lapidary training centres: Kombolcha ............................................................................................... 19 2.2.5. Lapidaries and Exporters ............................................................................................................................ 22 2.2.5.1. Addis Ababa .................................................................................................................................................. 22 2.2.5.2. Kombolcha and Delanta ........................................................................................................................ 29 2.3. Recommendations .............................................................................................................................................. 32 3. Governance ....................................................................................................................................................
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