How is this something to celebrate? This is like Israel drilling and stealing oil from the occupied West Bank. We truly are a cucked people
I understand the anger , it’s valid to question whether the Somali Region is really benefiting fairly from its own oil and gas. But this situation isn’t like Israel exploiting occupied land.
The key point here is: the Somali Regional State’s Energy and Mining Office run by Somali officials is directly contracting international firms, like Chinese companies, to extract resources. This isn’t a foreign occupation it’s a resource deal negotiated by Somalis in Ethiopia’s federal structure.
And there’s progress. In 2019, Ethiopia passed a law that gives:
Ethiopia’s Somali Region Now To Get 50% Of Oil Revenue
Ethiopia’s House of Federation (Upper House) passed a bill that’ll give Somali region 50% of oil revenue from the Somali region. Last year, Ethiopia started producing crude oil in the Somali…
somalilandstandard.com
Ethiopia’s House of Federation (Upper House) passed a bill that’ll give Somali region 50% of oil revenue from the Somali region.
Last year, Ethiopia started producing crude oil in the Somali region but the share the region would get has been contentious issue.
Here is the break down
In October 2019, Dr Kuang Tutlan, then State Minister of Mines & Petroleum said a new formula was being devised outlining revenue share between the federal government and regional states where oil exploration incomes are generated from. According to Dr. Kunag, the revenue share formula will see 50% share for the federal government and the remaining 50% will be disbursed to a given regional state where the resource is found.
Out of the 50% revenue to be disbursed for a given region where the resource is found, 10% of it will be allocated for the specific area where the resources is found, while the remaining 40% of it will be for other parts of the region including the specific area where resource is found. Out of the 50% federal revenue, the 25% will be disbursed to other regional states, Dr Kuang Tutlan said at the time.
These funds have already started flowing the Somali Region received
50 million birr, which is being used to build infrastructure like schools and clinics. While small, this is a start. They also produces gas from the region, which is where this initial money likely came from.
The 50 million birr the ministry gave to the Somali regional state will be used to build infrastructure facilities in the region including schools and health facilities
The federal Minister of Mines even acknowledged publicly that local communities must be the main beneficiaries , through employment, services, and direct revenue.
In a Facebook message Minister Takele posted, he said that mining is a national and public resource, he said, minerals wealth is national and public resource and therefore communities should the main beneficiaries. “Communities in the mining areas should also benefit from the mineral and oil resources through employment opportunities and other means,” Minister Takele said.
That said, I agree with ONLF and others who argue the deal still needs stronger reforms. The Somali Region should have:
- More decision-making power over contracts
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Greater transparency and oversight
- Equity in pipeline and processing infrastructure
So yes, criticism is justified but complete rejection doesn’t serve us. The Somali Region has a stake, and the next step is pushing for greater control, clearer revenue mechanisms, and accountability. That’s where the real struggle should focus now.
www.thereporterethiopia.com
