[ad_1]
Company News of Monday, April 15, 2019
Source: gbcghanaonline.com
2019-04-15
The Ankobra River has been bleached by illegal mining activities
Resource-rich Sub-Saharan countries fail to capitalize on their wealth of oil and mineral resources, due to an "enforcement gap" between laws governing extractive industries and actual practices.
An badysis by the Natural Resources Governance Institute (NRGI) on extractive industries in 28 countries in sub-Saharan Africa reveals that all but two – Botswana and Zambia – do not meet the standards set in their laws. Researchers using data from the Resource Governance Index found that in this regard, the region's performance is lower than that of any other region in the world.
This is contained in an extractive sector publication published in London and Accra by the Natural Resource Governance Institute.
"If sub-Saharan African countries fill the" implementation gap "and fully implement their own laws, they could generate more revenue from natural resources. They could also better combat the negative impacts of mining on humans and the environment, "said Silas Olan'g, co-director for Africa's Institute for Food and Agriculture. governance of natural resources.
According to the statement, Africa is home to 30% of the world's reserves of oil, gas and minerals. More than half of the exports of many countries in sub-Saharan Africa come from natural resources and up to 90% from the most oil-dependent countries. Mineral reserves account for a large share of government revenue in the region and could become even more important in newly discovered countries, such as oil and gas in Tanzania and Uganda, and in important strategic mineral reserves such as than cobalt in the world. Democratic Republic of Congo.
The biggest implementation challenges faced by resource-rich companies in sub-Saharan Africa are meeting legal requirements for transferring oil, gas and mining revenues to local authorities and publicly disclosing information. on social and environmental impacts. Half of the 28 countries surveyed do not publish environmental and social impact studies, although this is a legal requirement in many countries.
"Confidence in government and business erodes when legal reform is not followed and citizens are left in the dark. It is in everyone's interest to bridge the "implementation gap" as it ultimately allows countries to reap the benefits that their mineral wealth should offer, "said Olan'g.
But the boom and bust of commodities fueled public spending in resource-rich African countries, resulting in fiscal imbalances and high public debt. Many countries with a fiscal rule to stabilize public finances have not complied with it, raising the question of whether the government has put in place appropriate supervisory mechanisms or whether the rules are in place. were adapted to their purpose.
According to the statement, Sub-Saharan Africa lags behind other regions of the world in relation to state-owned mining and oil companies and natural resource funds, which manage billions of dollars in revenue sourced from resources in countries such as Angola and Gabon. Governments tend to disregard the rules for managing badets held in natural resource funds and disclosing conflicts of interest, especially when corruption is poorly controlled – a reality in most countries. countries studied.
"It is essential to build capacity and provide space for independent oversight to empower government institutions in resource-rich countries. Official control bodies and non-state actors such as the media play an important role here, "said Olan'g.
Supported by the African Vision and the Extractive Industries Transparency Initiative, countries in sub-Saharan Africa have largely reformed and modernized their laws governing extractive industries, and more reforms are underway in Africa. the region. The resulting legal frameworks currently have more stringent transparency and accountability rules than most other regions of the world, although implementation is flawed.
"It is not surprising but worrying to note that the more recent the reform, the greater the implementation gap. This serves to illustrate the fact that legal reforms can make headlines, but that implementation will ultimately bring benefits to citizens, "said Olan'g.
"If they are well managed, natural resources can potentially drive economic development. The governments of sub-Saharan Africa are well placed to rely on the strong laws they have developed, but this review of the index shows how much more attention they must now pay. to implementation. "
In the study "Resource Governance Index", a global study published in 2017 on the governance of extractive industries in 81 countries, only two countries in sub-Saharan Africa were found to be satisfactory: Ghana (for oil and gas) gas, but not mines) and Botswana. ). Five countries – Zimbabwe, DRC, Equatorial Guinea, Sudan and Eritrea – have all been considered unsuccessful.
The new report published by the Natural Resource Governance Institute deepens the problems underlying this low level of performance and badesses the impact of the "implementation gap" by proposing recommendations to remedy the situation. The report is available here.
Half of the countries in the region badessed in the index have renewed or amended their laws since 2010, but when the law reform is more recent, the implementation of the provisions on transparency and accountability is the one that delays most.
The overall picture shows that the more resource dependent a country is, the poorer the resource governance, with countries badessed for oil and gas being slightly more dependent and governed than those valued for mining, on average.
The best-performing region of the index (Ghana's oil and gas sector) and the weakest region (Eritrea's gold sector) are 57 points (out of 100) of difference. This is the biggest difference in all regions of the world.
For NRGI, strong legal frameworks include transparency and accountability provisions: rules on disclosure of extractive sector data and publication of contracts can support the negotiation of better offers. Requirements for local impacts of extraction can potentially mitigate negative impacts and contribute to community development. The press releases called for the introduction of revenue management frameworks and fiscal rules to facilitate the management of public finances in countries dependent on volatile commodity prices.
Source link
