Improving Transparency in Extractive Industries in Ethiopia, and Tanzania
Ethiopia and Tanzania are rich in natural resources, but both face questions on how to best govern the mining industry to ensure economic transparency and growth. The Extractive Industry Transparency Initiative (EITI) helps address the development and governance challenges facing these and other resource-rich nations. The knowledge exchange with Liberia was an opportunity to learn from the experience of a more mature EITI implementation.
Ethiopia and Tanzania are both resource-rich countries that are dealing with how to best govern their respective mining industry. The issues facing the industry in both countries include low productivity; smuggling; social problems such as lack of health care, education and potable water; conflict between large and small mine holders and with indigenous populations; and environmental impacts such as land degradation and deforestation.
Liberia was selected as the knowledge provider because of its experience with successful EITI implementation. As in Liberia, EITI challenges countries to make oil, gas, and mining revenues more transparent. To Implement EITI, key stakeholders in the government and civil society need to increase capacity to strengthen good governance of natural resources for poverty reduction, conflict prevention, and better dialogue among stakeholders and citizens. The exchange was designed in part to help Tanzania and Ethiopia develop capacity for creating a legal framework for natural resource management.
The Extractive Industry Transparency Initiative (EITI) started in recognition of the development and governance challenges facing resource-rich nations. In 2009 Liberia was the first African country to be designated as EITI compliant; by 2011 the country´s revenues from the extractives industry jumped by 70 percent.
In November 2013, delegations from the EITI Programs of Liberia (LEITI) convened with the EITI Programs of Ethiopia (EEITI) and Tanzania (TEITI) for a weeklong knowledge exchange program in Monrovia, Liberia. Prior to the meeting, the delegates participated in a collaborative review of the TEITI law by email and videoconferencing to help solidify expectations of the exchange.
During the meeting, delegates from Ethiopia and Tanzania visited the Minister of Lands, Mines and Energy of the Government of Liberia to learn about the legal framework for implementation and about the mining cadastral program. They also observed a Management Steering Group Meeting and made two site visits to mining communities. One site was a community near the Port of Buchanan, which exports most of Liberia’s iron ore. It was here that the delegates were able to meet locals and hear their opinions of EITI. The other site visit took the delegation to the Arcelor Mittal Mining Company’s iron ore shipping dock to hear the perspective of a large-scale mining operation.
The Ethiopian and Tanzanian delegates were particularly interested in how to communicate with and educate the public about EITI as well as Liberia’s inclusion of the forestry sector in the EITI framework. This latter point was a way to maintain the rule of law in the logging regions and reduce illegal logging and excess harvesting. Like the pre-meeting preparation, there was a collaborative review of the TEITI law done virtually over email and videoconferences after the study tour to consolidate understanding and lessons learned.
- Tanzania submitted a draft TEITI law based on the Liberian model to their Cabinet in early November 2013. The South-South Facility grant helped to support two prominent experts on natural resource governance who provided feedback on the draft TEITI law. The enactment of the law is part of the TEITI Secretariat FY 2013-2015 workplan.
- Tanzania and Ethiopia plan to make the disclosure of extractive's sector data mandatory for companies and the relevant government agencies.
- The exchange strengthened Tanzania and Ethiopia’s capacity to provide technical and material support to artisanal miners; to train miners to rehabilitate abandoned mining areas; and to develop human, financial, and material resources to enforce the laws at federal and regional state level.
- The feedback from the Tanzania's delegation was overwhelmingly positive as they decided to start paying more attention to their artisanal small-scale mining sector based on discussions with the Ethiopian delegation that has a policy to empower artisanal and small-scale miners.
- A good facilitator is critical; develop a comprehensive terms of reference. Ideally the facilitator should have both knowledge of the sector/topic and good facilitation skills.
- Share contact information among participants. In addition to sharing the contact info of the SSKE participants among themselves, it would be good to include the contact info of all the experts/stakeholders who participated during the SSKE.
- Cater to different audiences. When the delegations are so different in nature (i.e., technical people vs. decision-makers), it is a good idea to create separate and more specialized sessions/opportunities for interaction that cater to the specialized audiences. This may require more resources and complicate scheduling but would be worth exploring for future study tours.
- Ask more specific questions on survey such as “what actions were taken as a result of the exchange?” Most of the responses were too general.
The World Bank manages projects on EITI implementation and technical assistance to the mining sector in both countries. The WBG brokered the exchange with a grant of US$28,977.
EITI Secretariats from Ethiopia, Liberia, and Tanzania; Ministries of Mines; civil society groups involved in the EITI process; and mining company representative in Tanzania.
The experience from this activity is being mainstreamed with ongoing World Bank support to EITI in all three countries. Moreover, some aspects of capacity building will be considered within the realm of mining sector technical assistance.
- H.E Ato Addisu Arega, State Minister of Policy and Planning implementation
- Ato Kokeb Misrak, Director for Bilateral Cooperation in the Ministry and member of the Ethiopian National Steering Committee representing the Ministry of Finance & Economic Development.
- Ato Girma Tafesse, Director, Ethiopian Revenue Collection Authority
- Ato Tadilo Chekol, Director of Finance & Communication Auditor for institutions in the
Office of General Audit and member of the Ethiopian National Steering Committee (NSC)
- Ato Teketsel Tisge, a member in the NSC from Ministry of Mines representing Hard Mineral
- Kidist Mamo, ERT reporter
- Melaku Tadesse, Consortium of Christian Relief Development Association, a CSO that serves as an umbrella body for more than 350 NGOs.
- Merga Kenea, Head, EEITI
- Athuman Mahmoud Kwariko, Program Coordinator, EITI Secretariat and member of Tanzania Geological Society
- Catherine B. Mbatia, Head of TEITI Communications
- Blandina Sembu TEITI MSG Member from civil society and professional journalist
- Juliet Moshi, Legal Officer for Ministry of Energy and Minerals
- Gerald B. Mturi, Corporate Administration Manager for Resolute (Tanzania) Limited in Dar es Salaam and proxy member of the TEITI MSG, a member of the Minimum Wage Board (Mining Sector), and a member of the Finance Committee/Policy Committee/Public Relations Committee of the Tanzania Chamber of Minerals and Energy.
- Godvictor Lyimo, tax professional with AngloGold Ashanti: Geita Gold Mine Tax and Corporate Affairs Manager
- Alice Swai, Legal Officer in TEITI-Secretariat
- Petro Ahham, founder director of both the Multi-Environmental Society (MESO) and Arusha NGO Network (ANGONET) and alternate member through Publish What You Pay-Tanzania to MSG-TEITI Board as well as member of National Council of NGOs in Tanzania (NACoNGO)
- Mr. Bavoo Junus, corporate advisor, Attorney General’s Office of the United Republic of Tanzania as a State Counsel
Liberian Delegation included:
Sam Tokpah, LEITI National Coordinator
Dr. Roosevelt Goselin Jayjay, Facilitator and Moderation
“The civil war caused the poor to get poorer because people had disagreements about who should take what profits from mining,” said Cecilia Danuweli, Chair of ¨Publish What You Pay¨ International Coalition in Liberia. “Now we understand better how citizens can benefit from natural resource exploitation and we think change is coming to Liberia.”
Ethiopian State Minister for Planning and Policy Implementation, Ato Addisu Arega, said the conference enabled his country to learn a lot from Liberia's achievements that will enhance Ethiopia's quest to become EITI candidate. Since the study tour, the Ministry of Mines in Ethiopia is reorganizing its mining cadaster office to strengthen the transparency of the licensing process and increase its revenue collection capabilities.
“Companies were coming to the country but they didn’t come the way they should have come … some of them they came because of friends they had in the high levels of the Gov […] We found out that our laws were been exploited, our golds, our diamonds…everything! Liberia is a very rich country […] but we are still poor.” -- Civil society member, Liberia.
“We think that if PWYP and LEITI join forces and continue to advocate for the rights of our people […] we think that our people will surely benefit… The change will come when the people that are affected by those decisions start to participate in the concession agreements process.” -- Cecilia Danuweli, Publish What You Pay Liberia (PWYP)
“The International Secretariat is delighted that such peer learning is going on and there is so much expertise in natural resource management within your three countries – Liberia on using the EITI to explore issues beyond revenue transparency; Tanzania on innovations like beneficial ownership through its Business Registrations and Licensing Agency; Ethiopia on collection of data on artisanal and small-scale mining. The mining issues across all three countries are significant, as are the burgeoning hydrocarbons sectors. We are all grateful to the World Bank for making this cross-country learning possible.” Email message to the delegates from Eddie Rich, Deputy Head and Regional Director for Africa and Middle East EITI International Secretariat)
Liberia has gone the extra mile in the EITI process beyond the minimum requirements. The demand is always on African countries, though other more developed countries are not as transparent as we are (not exact quote).
-- Liberia Vice President Joseph Nyumah Boikai, referring to his participation in the recent 6th Global Conference of the Extractive Industries Transparency Initiative Australia
Challenges for private sector: “There are things that are experienced by the Gov for the first time; there is unfamiliarity regarding how to deal with issues and requirements…often you talk with somebody they tell you one thing, you go back tomorrow and talk to another person and they tell you a different thing which makes it difficult for private entities like Chevron” (Interview with Chevron)