eiti implementation in uganda - progress report

7/27/2019 EITI Implementation in Uganda - Progress Report

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EITI IMPLEMENTATION IN

UGANDA

Godber Tumushabe

Executive Director

Advocates Coalition for Development andEnvironment (ACODE)


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Purpose of EITI

Key features of EITI

EITI- Operational aspects African countries in EITI

EITI and governance

EITI in Uganda

What needs to be done to create a winning

minerals sector.

Outline of Presentation


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The fundamental purpose of EITI is to confront

abuses of resource wealth in countries rich in oil,

gas, and minerals- the resource curse.

Johannesburg 2002 (WSSD)the idea is born.

2003EITI principles are adopted with a pledge to

harness resources wealth as an engine of growth and

development Calls to improve transparency and

accountability through proper resource management.

2005EITI Criteria setting out the requirements for

successful implementation.

Purpose of EITI- Addressing Abuses


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Country ownership: access to the club is voluntary

Involvement of a variety of stakeholderscross purposes

but mutual interests (governments, industry, donors, civil

society, citizens organizations). Mandatory disclosure of company payments and

government receipts.

The dissemination of EITI Reports is expected to be

widespread.

An in-built system of ndependent validation of EITI

compliance

EITI among international standards and codes; endorsed byUN and AU; used by African Peer Review Mechanism (APRM)

Key Features of EITITraditional

International Development Jargon


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CompaniesDisclose Payments

to Government

GovernmentDiscloses Receipts

from Companies

Oversight by Multi-

Stakeholder Group

Reconciliation

of Audited

Payments /

Receipts

(EITI Report)

Award of

licenses

&

contracts

Regulation

&

monitoring of

operations

Revenue

Distribution

&

Management

Expenditure

Management:

Pursuit of

Sustainable

Development

Policies

EITI in Operation


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21- # of countries implementing the EITI in Arica

18- # of African countries that have published EITI

Reports (31 reports in total). 5- # of African countries considered EITI-

Compliant: Central African Republic, Ghana,

Liberia, Niger, Nigeria

Several more countries close to compliant or

undergoing validation

2- # of countries delisted from EITI.

African Countries in the EITI


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The mandate is EITI is largely focused on revenue transparency.

It relies on peer-pressure to improve broader resource governance.

Improved governance then derives from multi-stakeholder engagement:

Investment incentives: level, transparency

Contract negotiations (Legal Support Facility)

Current tax regime for EI

Regulatory environment for EI

Revenue sharing arrangements

In the African context and the Africa led and Africa owned jargon, EITIis used in the APRM Questionnaire:

Corporate governance

Economic governance

EITIA Tool for Improving the Governance of

Natural Resource Governance


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Uganda is

Competing in aCrowded Sector


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Two Options for Natural Resources reach

countries

Governments can chose to succeed withouttheir citizens Angola, Equitoria Guinea.

Governments can succeed with their

citizens

Botswana, South Africa, Ghana,Kenya.

Governments can remain in a crisis mode

DRC, Sudan, Chad. EITI and good governance are the choices

of countries that chose to succeed withtheir citizens.


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Uganda and the EITI process

Where Are We?


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o Save for declarations of commitment from government

officials time and again, Ugandas commitment to

subscribe to EITI is uncertain.

o This is consistent with recent trends where evidence

shows that Uganda is reluctant to participate in

governance initiatives:

o Open Government Partners (OGP)

o Partnership for Social Accountability (PSA)World Bank

Uganda and the EITI Process

The process is uncertain or unknown


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Governance is the Foundation for An Enabling

Environment for the Mining Sector -

Governance indicators tracked by theWorld Bank.

Voice and Accountability

Political stability and absence of violence.

Government effectiveness.

Regulatory quality.

Control of corruption. Uganda performs below average on each of these

indicators and the current governanceenvironment has negative implications for the

mining sector.


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World Bank Indicators on

Governance

oVoice and accountability - The indicator on voice and

accountability assesses the extent to which citizens have politicalrights and civil liberties and are able to participate in selectingtheir government.


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Governance

oPolitical stability and absence of violence- Reflects perceptions

of the likelihood that the government will be destabilized oroverthrown by unconstitutional or violent means, includingpolitically-motivated violence and terrorism. (Weak =-2.5;strong=2.5; i.e. the more ascending the trend is towardspositive, the better)


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Governance

oGovernment effectiveness - Reflects perceptions of the quality

of public services, the quality of the civil service and the degreeof its independence from political pressures, the quality of policyformulation and implementation, and the credibility of thegovernment's commitment to such policies


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Governance

Regulatory quality- Reflects perceptions of the ability of the

government to formulate and implement sound policies andregulations that permit and promote private sector development.


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Governance

oControl of corruption- Reflects perceptions of the extent to

which public power is exercised for private gain, including bothpetty and grand forms of corruption, as well as "capture" of thestate by elites and private interests.


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Creating a competitive minerals sector What

we Must Demand from Government

Creating a competitive minerals sector isour business as much as it is the businessof government.

Demand that Government should expeditiouslyinitiate and fast track the process ofsubscribing to EITI.

Open Government Partnership (OGP).

Partnership for Social Accountability.


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Creating a competitive minerals sector What

we Must Demand from Government

Identifying and developing multi-purposeinfrastructure projects the mining sectorwould benefit immensely from this kind of

infrastructure

participation in EITI canbuild the confidence for partnerships.

Legal reforms in infrastructure

development can facilitate the multi-purpose infrastructure agenda.

Creating opportunities for ordinary people the mining industry must put

communities at the heart of their industry.


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Concluding Remarks

Uganda has multiple opportunities and miningshould be seen as one of them.

Making progress including in mining will be more a

function of governance and leadership. Participating in EITI is communicating a message of

confidence in our government systems andgovernance.

Sitting on the fence of whether to join or not ordelaying the process works against us in anincreasingly competitive market place.


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THANK YOU

eiti implementation in uganda - progress report

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