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Business News of Monday, 15 April 2019
Source: Myjoyonline.com
2019-04-15
The Jubilee oil field
Countries across resource-rich sub-Saharan Africa are failing to reap the benefits of their wealth of energy and the environment.
An badysis by the Natural Resource Governance Institute of the extractive industries in sub-Saharan African countries reveals that all but two – Botswana and Zambia – are failing to deliver the standards in their laws.
Researchers using data from the Resource Governance Index found in this respect in the world.
"If countries in sub-Saharan Africa closed the implementation gap and fully implemented their own laws, they could generate greater income from natural resources. They could also better fight the negative human and environmental impacts of extraction, "said Silas Olan'g, Africa Co-Director for the Natural Resource Governance Institute.
Africa is abundant in natural resources and is home to 30 percent of the world's oil, gas and mineral reserves. More than half the exports of many countries in sub-Saharan Africa as from natural resources and as much as 90 per cent in the most oil-dependent countries.
Mineral reserves represent a large share of government revenues and have the potential to become more important of Congo.
The biggest implementation challenges faced by resource-rich societies in sub-Saharan Africa are fulfilling the requirements of the local government, and the provision of information on social and environmental impacts.
Half of the 28 countries studied do not disclose environmental and social impact badessments, even though this is a legal requirement in many countries.
"Trust in government and companies where they are in the dark. Closing the 'implementation gap' is in everyone's interests because of their mineral wealth should offer, "said Olan'g.
But commodity booms and busts have fueled public spending in resource-rich African countries, resulting in budget imbalances and high public debt.
Many countries that have a fiscal rule to stabilize public finances have failed to comply with it.
Sub-Saharan Africa, which manages billions of dollars of resources in Angola and Gabon.
Governments, where corruption is poorly controlled, is one of the most important factors in the history of the economy.
"Building capacity and permitting space for independent oversight is critical for holding institutions accountable in resource-rich countries. "It's important here," said Olan'g.
Supported by the Africa Mining Vision and the Extractive Industries Transparency Initiative, countries in sub-Saharan Africa has a wide range of reformed and modernized laws governing extractive industries.
The resulting legal frameworks currently have greater transparency and accountability than most other parts of the world, even though there are shortcomings in implementation.
"It is unsurprising purpose, which is the most recent reform, the larger gap in implementation. It said that it will be implemented to the extent that it will deliver benefits to citizens, "said Olan'g.
"If managed well, natural resources offer the potential for driving economic development. Governments in sub-Saharan Africa are well-positioned to build their organizations, but this review of the index shows how they need to turn greater attention to implementation. "
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