By Business Reporter – Tuesday 1 October 2019
HARARE (Mining Index) – THE Institute for Sustainability Africa (INSAF) in partnership with OXFAM today launched a publication on Zimbabwe’s roadmap to join the Extractive Industries Transparency Initiative (EITI).
The EITI book launch, which is a case study for joining by Zimbabwe, follows Finance and Economic Development minister Mthuli Ncube’s announcement during his 2019 national budget statement in which he noted Zimbabwe’s immediate intention to become an EITI member.
EITI was founded in 2003 to promote good governance, open and accountable management of oil, gas, metals and mineral resources, guided by the belief that a country’s natural resources belong to its citizens.
EITI seeks to strengthen public and corporate governance, promote understanding of natural resource management, and provide the data to inform reforms for greater transparency and accountability in the extractive sector.
The launch featured a road map to implementing EITI in Zimbabwe including challenges and recommendations.
“The paper provides an independent perspective on the business case for Zimbabwe joining EITI with the goal to motivate adequate preparations for its successful adoption and implementation,” revealed INSAF CEO Rodney Ndamba.
Whenever there is a new natural resource discovery mostly in developing nations, there is always a spike in illicit financial outflows, corruption, estimated to be prejudicing the African continent approximately US$50 billion per annum, highlighting the “national resources curse” phenomenon, where corruption and rebellion follow after discovery of valuable natural goods.
A classic example is the Democratic Republic of Congo (DRC) in which despite having vast mineral resources, the central African state is characterised by war and remains backward economically.
“The paper analyses provisions of EITI Standards 2019, experiences of other African countries, private sector perspective, prior initiatives and publications to develop a business case for joining EITI by Zimbabwe. Further, it identifies potential challenges and provides recommendations,” said Ndamba.
EITI Standard requires the disclosure of information along the extractive industry value chain from the point of extraction, to how revenues make their way through the government, and how they benefit the public.
EITI currently hosts 51 implementing countries, supported by a coalition of governments, companies, and civil society.
Mining stakeholders such as Zimbabwe Environmental Law Association (ZELA) have lately urged government to adopt EITI to help promote transparency and curb corruption in the extractive sector. ENDS//