Biodiversity Institute Says Long-idle Benefit Fund to Reach Communities after Audit Exposed Delays

The Ethiopian Biodiversity Institute (EBI) has announced that a benefit fund, accumulated from companies utilizing Ethiopia’s genetic resources and largely dormant for approximately 15 years, will finally be disbursed to communities. This development follows a federal audit that exposed significant delays in the fund's administration, highlighting critical gaps in the implementation of Ethiopia's Access and Benefit-Sharing (ABS) framework. The funds are earmarked for community development and biodiversity conservation, signaling a renewed commitment by the EBI to operationalize the legal provisions that mandate equitable benefit-sharing, aligning with both national legislation and international obligations under the Nagoya Protocol.

A significant legal and environmental development is unfolding in Ethiopia, as the Ethiopian Biodiversity Institute (EBI) moves to release a long-idle benefit fund derived from the commercial utilization of the nation's rich genetic resources. This fund, which has remained largely unused for about 15 years, is now set to be directed towards crucial community development and biodiversity conservation initiatives. The catalyst for this action was a federal audit that brought to light the protracted delays in the fund's administration, prompting a re-evaluation of its operational mechanisms.

This announcement by Million Adane, genetic resources access and benefit-sharing research executive at EBI, marks a pivotal moment for Ethiopia's commitment to equitable benefit-sharing. It underscores the nation's efforts to uphold its sovereign rights over genetic resources while ensuring that local communities, who are often the custodians of traditional knowledge, receive fair compensation for their invaluable contributions. The impending disbursement is not merely a financial transaction but a critical step towards strengthening the integrity and effectiveness of Ethiopia's Access and Benefit-Sharing (ABS) regime, which is deeply rooted in both national law and international treaties.

The current development highlights the persistent challenges in translating legal frameworks into tangible benefits for communities and conservation efforts. This article will delve into the statutory and international context governing ABS in Ethiopia, analyze the reasons behind the fund's dormancy and the implications of the recent audit, and discuss the practical considerations for legal professionals navigating this evolving landscape.

Ethiopia's legal framework for Access and Benefit-Sharing (ABS) is robust, primarily governed by Proclamation No. 482/2006 on Access to Genetic Resources and Community Knowledge and Community Rights, complemented by Regulation No. 169/2009. These instruments affirm national sovereignty over genetic resources and explicitly recognize the rights of local communities to their traditional knowledge associated with these resources. A cornerstone of this framework is the requirement for Prior Informed Consent (PIC) from concerned local communities and an access permit from the state, administered by the EBI, before any genetic resource or associated community knowledge can be accessed.

The Proclamation mandates that at least 50% of any monetary benefits derived from an ABS agreement must be channeled directly to the community that provided the resource or knowledge, emphasizing the equity goal. Furthermore, it prohibits the granting of intellectual property rights, such as patents or plant breeders' rights, on genetic resources or community knowledge without the prior consent of both the state and the relevant community. This national framework is buttressed by Ethiopia's adherence to international conventions, notably the Convention on Biological Diversity (CBD) and its supplementary Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization. The Nagoya Protocol, which Ethiopia has ratified, provides a global framework for greater legal certainty and transparency in ABS, aiming to prevent biopiracy and ensure fair and equitable sharing of benefits.

The Ethiopian Biodiversity Institute (EBI) serves as the focal government organization responsible for the conservation, sustainable utilization, and implementation of ABS principles in Ethiopia. Its mandate includes administering the nation's genetic resources on behalf of the government and its people, ensuring that benefits arising from their utilization contribute to national development and biodiversity conservation. The EBI's duties encompass maintaining international relations, implementing international conventions, and promoting sustainable utilization of Ethiopia's rich biodiversity, which is recognized as one of the most diverse globally.

The recent federal audit by the Office of the Federal Auditor General critically questioned why funds collected through Ethiopia's ABS system had remained largely unused for approximately 15 years, despite clear legal provisions requiring communities to benefit. This audit served as a crucial impetus for the EBI to expedite the disbursement process. Million Adane of EBI attributed the prolonged delay to several factors, including the nascent stage of Ethiopia's ABS system at its inception, the initially low revenues generated (around one million Birr, which previous officials reportedly deemed too small for distribution), and the absence of a clear implementation directive for the fund.

The challenges in operationalizing the ABS framework extend beyond mere fund disbursement. The legal framework, while comprehensive in its breadth, has faced gaps in detailed implementation. For instance, there has been a lack of clear procedures for tracking or valuing derivatives once genetic material leaves Ethiopia. Furthermore, the audit identified weaknesses in ensuring that companies fulfilled non-monetary benefit-sharing obligations, such as technology transfer, research collaboration, and community capacity building, which are equally vital components of equitable sharing. Enforcement against illegal users of genetic resources has also been a point of contention, with the Federal Auditor criticizing EBI for primarily relying on warnings and awareness notices rather than stronger legal sanctions, despite inspections revealing numerous instances of illegal trafficking. EBI defended this approach by citing limited awareness of the relatively new ABS laws, arguing that the law's purpose was initially to educate rather than penalize.

In response to these findings and to bolster its ABS implementation, EBI has reportedly completed the necessary groundwork and is awaiting procedural approval from Parliament to release the accumulated funds. Moreover, the Institute has taken steps to address non-compliance, with five companies identified during inspections either entering the legal system after guidance or ceasing activities requiring permits, and a commitment to take legal action against repeat offenders. Ethiopia has also been actively engaged in international efforts to strengthen its ABS capacity, including a UNDP-GEF project launched to help review existing laws, harmonize the national framework with the Nagoya Protocol, train stakeholders, and raise awareness among local communities. This project aims to address the identified gaps and enhance the country's ability to effectively manage and benefit from its genetic resources.

The EBI's commitment to finally disburse the long-idle benefit fund represents a crucial step forward in Ethiopia's journey towards effective Access and Benefit-Sharing. It signifies a move from policy formulation to tangible action, addressing a significant oversight highlighted by the federal audit. This development will undoubtedly bring much-needed resources to local communities and bolster biodiversity conservation efforts, aligning with the core principles of national legislation and international agreements like the Nagoya Protocol.

For legal practitioners, this signals an era of increased scrutiny and enforcement within Ethiopia's ABS landscape. Companies and researchers engaging with Ethiopia's genetic resources must ensure strict adherence to the requirements for Prior Informed Consent (PIC) and Mutually Agreed Terms (MAT), as well as fulfilling both monetary and non-monetary benefit-sharing obligations. The EBI's renewed focus on enforcement means that a proactive and compliant approach is more critical than ever. Practitioners should closely monitor the parliamentary approval process for fund disbursement and any subsequent directives, as well as the ongoing efforts to harmonize national laws with the Nagoya Protocol, which will shape the future of ABS compliance and opportunities in Ethiopia.