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A PRESENTATION ON EITI IMPLEMENTATION IN ZAMBIA

A PRESENTATION ON EITI IMPLEMENTATION IN ZAMBIA PRESENTED TO Zambia Alternative Mining Indaba Workshop-Ndola BY MR. SIFORIANO S. BANDA HEAD-EITI ZAMBIA SECRETARIAT. JUSTIFICATION OF EITI.

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A PRESENTATION ON EITI IMPLEMENTATION IN ZAMBIA

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  1. A PRESENTATION ON EITI IMPLEMENTATION IN ZAMBIA PRESENTED TO Zambia Alternative Mining Indaba Workshop-Ndola BY MR. SIFORIANO S. BANDA HEAD-EITI ZAMBIA SECRETARIAT

  2. JUSTIFICATION OF EITI Countries rich in natural resources ( non-renewable) experience a ‘resource curse’ leading to high levels of poverty and conflicts among other things due to lack of transparency and accountability. EITI is intended to address the issue of a ‘resource curse’ by promoting transparency and accountability in the use of natural resources.

  3. JUSTIFICATION OF EITI • This is done through disclosure of payments by oil, gas and mining companies and revenues received by government. • Benefits of implementing EITI include increasing revenue collection and investment promotion contributing to poverty reduction and sustainable economic development.

  4. GENERAL EITI BACKGROUND • The Extractive Industries Transparency Initiative (EITI) is a global coalition of: • Donors, • Oil, gas and mining companies, • Resource-rich countries, • Civil society organizations and • Investors.

  5. GENERAL EITI BACKGROUND • The Initiative was first announced at the World Summit for Sustainable Development, held in Johannesburg, South Africa in 2002 • The EITI was launched in London in 2003. • To date about 40 countries in Africa, Asia, Latin America, Middle East, Caribbean Countries and Europe have subscribed to the Initiative.

  6. CURRENT GLOBAL EITI SITUATION • Some developed countries are also intending to join EITI to promote transparency and accountability in revenues generated by multinational companies and reduce tax evasion ( Economic forum in South Africa comments by Mr. Koffi Annan and recent G8 summit comments by Mr. David Cameron to fight tax evasion)

  7. CURRENT GLOBAL EITI SITUATION • Developed countries intending to join EITI are: • United States of America • United Kingdom • Canada • Australia • France

  8. CURRENT GLOBAL EITI SITUATION • Other developing countries intending to join EITI: • Uganda • South Sudan • Malawi

  9. EITI IN ZAMBIA • Zambia has been mining copper for over 100 years • Zambian economy depends on the mining sector for its exports and development • Despite this scenario, the country is still experiencing high levels of poverty and underdevelopment.

  10. EITI IN ZAMBIA • The privatisation was expected to address poverty and development for the country • However, after privatisation, the stakeholders believed that the country was not benefiting from the privatisation programme

  11. EITI IN ZAMBIA • The stakeholders felt that privatisation was not achieving its objectives because of some of the following negative perceptions: • Lack of transparency in the negotiations of mining agreements; • Lack of information on what mining companies were paying to the Government

  12. EITI IN ZAMBIA • Zambia joined EITI in 2009 and became compliant on 19th September 2012 • Being compliant means Zambia has put in place processes for disclosing payments by mining companies and revenues received by the government and government agencies

  13. EITI POST-COMPLIANT ACTIVITIES • Expanding scope • EITI to provide a platform for discussing issues such as: • To assist in developing a policy in ‘Mineral-Resource-Use-Policy’ • Transparency in mineral production • Address Tax evasion and Transfer Pricing

  14. EITI POST-COMPLIANT ACTIVITIES • Transparency in extractive contracts and licenses • Contribute towards the expanding of the Tax base ( include small mining companies and Gemstones, Artisans) • Enacting of the EITI Act

  15. EITI IMPLEMENTATION CHALLENGES • Make EITI financially sustainable • Synchronise the financial reporting years between government and mining companies • Create EITI database

  16. EITI IMPLEMENTATION CHALLENGES • Effective monitoring of EITI implementation by Civil Society Organisations (CSOs) and the Media • Active engagement of the CSOs and the Media in disseminating the EITI reports to the public • Timely production of Reconciliation reports

  17. CONCLUSION • Long terms goal of EITI is to contribute to poverty reduction and sustainable economic development

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