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Category: Uncategorised Published: Tuesday, 15 November 2016 Written by Super User


Based on the World Summit on sustainable Development in Johannesburg (South Africa), the Extractive Industry Transparency Initiative (EITI) was established in 2002 by the coalition of natural resource rich countries, donors, mining companies, civil society groups and investors. Then a set of criteria were developed for EITI implementation that includes four phases: Sign-up, Preparation, Dissemination and Disclosure. Countries implementing EITI commit themselves to providing information on all payments required from minerals, gas and oil by the government from mining companies. Government’s willingness to work with the Civil Society is a key component of the implementation of the EITI.


Although Ethiopia’s mining, gas and oil sector is still at its infancy, it is growing at a fast pace, with an intensive exploration activity that is already delivering results, with reserves being confined in gold deposits and gas. At present there are 270 mining companies registered of which 60 are operating mines. The rest are engaged in various stages of prospecting and exploration. At present, 34 mining companies joined EITI on a voluntary basis. There are a number of companies that now will start mining, and potentially become the important stakeholder of the EITI.


Ethiopia has recorded incredible growth since the last two decades and now heading the second phase of Growth and Transformation plan, and aggressively working for better governance and transparence towards accelerating sustainable economic growth. In line with this, the government has initiated and established a federal level transparency and accountability institution and various guidelines for natural resource governance. Ethiopia has initiated EITI implementation in February 2009, which is timely, and continued until she was designated as an EITI candidate[1]country on March 19, 2004. Ethiopia set overarching major goals and targets.  As per the procedure, Ethiopia EITI has already completed the first signing up stage, Sign up, and now the EEITI is majorly at preparation phase, and preliminary process of disclosure and dissemination of information. Preparation of the Communication strategy is part of the Preparation phase.

In view of this background, Ethiopia’s bid for EITI candidacy plays a significant role. The political leadership of the Ethiopian Government seems committed to an inclusive development of the sector and needs to avoid any adverse effects of extracting resources. EITI is perceived as “the solution by ensuring a transparent and accountable financial and contractual environment shield from undue corruptive pressures. The commitment of the policy makers to the EITI standard has remains strong and resilient. Legislation making the EITI process mandatory for companies has passed the Parliament and will now be enforced. In addition, a number of development partners, including the World Bank, UNDP and USAID are considering interventions that would improve the investment climate and regulatory framework so as to ensure positive outcomes from the extractive industries sector.

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