Abstract
The main purpose of this minor dissertation is to examine the linkages of Eritrea’s mining industry with the rest of the economy. In doing so, there is a particular focus on backward and forward linkages. Government policies, particularly the mining proclamation, form the basis of the analysis in benchmarking current practices and thereby identifying lessons learned for upcoming projects. The methodology used is a qualitative, case study method. Semi-structured questionnaires were used to collect data from 21 key informant (KI) interviews and one focus group discussion (FGD). The KIs were conducted with personnel from the case company, current and potential suppliers, and government officials, while the FGD was done among internees. Secondary data is also used to give descriptive information. The findings show that the forward linkages are very limited. Copper and zinc are exported at concentrate level, while gold and silver are exported in bars. The main constraints in value addition and beneficiation are the low volume of extraction and energy. The level of backward linkages is better than the forward linkages, although they lack depth and breadth. The main reasons identified are low quality and quantity, non-competitive prices for products, and the lack of qualifications, knowledge and skills for recruitment. However, services such as trucking and machinery maintenance are provided by local companies. The presence of limited linkages, which are related to the low capability, is in line with the existing literature.
M.Phil. (Industrial Policy)