sap gheit iv2
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Ghana Extractive Industries Transparency Initiative:
SAP Solution for Ghana
Steve Williams, Director, Corporate Social Responsibility, SAP
May 17, 2011
© 2011 SAP AG. All rights reserved. 2Confidential
Resource curse
The resource curse (Paradox of Plenty) refers to
the paradox that countries and regions with an
abundance of natural resources, specifically point-
source non-renewable resources like minerals and
fuels, tend to have less economic growth and
worse development outcomes than countries with
fewer natural resources.
From Wikipedia, the free encyclopedia
© 2011 SAP AG. All rights reserved. 3Confidential
The joint IT project for EITI implementation
Challenges:
Bringing in the oil & gas sector
Closing the gap in reporting
The IT solution:
Addresses the challenge of delayed reporting
Is a development partnership between: The Ministry of Finance on behalf of GHEITI,
SAP AG
GIZ operating on behalf of the German Federal Ministry for Economic Development
and Cooperation (BMZ)
The partnership adds a technical solution and specific managerial skills to the EITI process.
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Scope of the EITI reporting in Ghana
Business Intelligence
Financial Reporting
Government
Institutions
District
Assemblies
© 2011 SAP AG. All rights reserved. 5Confidential
Benefits achieved
From paper to real time web communication
Content is checked and approved before data are made available to the Office of the Ghana
EITI aggregator.
© 2011 SAP AG. All rights reserved. 6Confidential
Presentation of the solutionReconciliation of payments from Extractive Industries
Industries
Extractive companies submit their payments
through the web
EITI form
Addition of comments and attached files
Financial and statistical data are entered to allow
analysis
Government entities
Public sector submit revenues received from
extractive companies
© 2011 SAP AG. All rights reserved. 7Confidential
Presentation of the solution Reconciliation of payments to District Assemblies
Government entities
Declaration of payments to Local Authorities
District Assemblies
Declaration of Mineral royalties received from
the Office of the Administrator of Stool Lands
Declaration of utilization of funds
© 2011 SAP AG. All rights reserved. 8Confidential
Presentation of the solutionReporting
Ghana EITI aggregator
Follows up reporting from all
the entities involved in the
process
Analyzes and reconciles data
Publishes reportings through
Excel or pdf files
© 2011 SAP AG. All rights reserved. 9Confidential
Technology delivery
A powerful and flexible tailored IT solution to support
the EITI implementation in Ghana has been
installed using BFC and Extended Analytics.
The solution will optimize the publication of trustful
and transparent information to the stakeholders in
Ghana.
The solution we propose is
Easy to use
Implemented quickly
Adaptable to the other EITI countries
Business Intelligence
Financial Reporting
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Knowledge transfer
A key aspect of the project
Local team is able to handle the tool & reporting
Done through workshops with the EITI multi-stakeholders group
One team of SAP consultant and EITI members working together all along the project
Documentation
End users specific documentation
Reporting and administrative team documentation
Maintenance documentation for IT specialists
Training
For project team at the beginning of the project
For end users before the go live
For IT specialists during installation of platform
© 2011 SAP AG. All rights reserved. 11Confidential
SAP delivers Good Governance for Ghana
SAP committed to the project because the conditions were favorable to a software implementation and we were highly impressed with the maturity of the EITI process in Ghana.
IT is an essential enabler to meet the high level of governance standards that this country has set itself.
Effective IT bridges insight and action. In this case, it provides the big picture of revenue streams and payments, together with detailed information. Based on this information, the GEITI Secretariat will be in an even better position to ensure that declaration and payments are reconciled.
In concrete terms, this project will deliver really powerful benefits such as:
Effective and fast reconciliation of declarations and payments;
Quality of data with a validation process and one version of the truth;
A simple overview of revenues;
Reduced administrative overhead;
Faster reporting cycles.
© 2011 SAP AG. All rights reserved. 12Confidential
© SAP
Thank you!
© 2011 SAP AG. All rights reserved. 13Confidential
What SAP stands for
© SAP
Our Purpose
SAP helps our world run better in order to create enduring prosperity for people everywhere
“SAP aims to not only help businesses run better, but help the world run better,” said Jim Hagemann Snabe, co-CEO, SAP. “The Ghana EITI project is one such project where we’repleased to bring both our software and our industry and business process expertise to help Ghana meet the global standard for transparency in the oil and mining industries.”
This project presents a unique opportunity to engage within our Corporate Social Responsibility efforts not only with a financial contribution, but also with skills and technology, and as such help the EITI process and the country of Ghana to run better.
This is a project with a potential to touch the lives of millions of people through good governance.
Our Ambition
is to deliver on this purpose by making businesses and institutions around the globe perform at a significantly higher level of efficiency and effectiveness by enabling business network transformation and closed-loop insight-to-action
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