1. Introduction to EITI Media workshop, Capital hotel 12 th November, 2012 Reinford Mwangonde, Citizens for Justice

2. Overview 1. The Resource wealth of Africa 2. The Resource Curse 3. Introduction to EITI 4. Malawi and EITI 5. Why the symposium

3. Africa’s minerals  There is consensus that the extractor sector in its present form and character enforces poverty rather than reducing it  There is consensus that the sector in present form fuels conflicts, engenders human right violations and promotes gross equality.  Major stakeholders in the extract sector have evolved s/ initiatives/ processes in reaction to these criticisms - Abt 12 mineral dependent countries as well as 6 oil dependent counties in Africa went HIPC and had the worst human development indicators with most of civil conflicts between the 1990s and 2004 (WB). These include Nigeria, Sierra Leone, Chad, Gabon, DRC and Ghana. Liberia, Senegal and Guinea Bissau experience similar problems in the production of other valuable natural resources such as timber, fish, and cashew nuts. Broadly, there are four problems facing these countries: domestic governance problems- effective & efficient utilization of resources (including the mismanagement and corrupt use of revenues, reflecting poor quality budget processes and budgetary outcomes) regulatory problems- obligations of extractive companies, including transparency of what they pay as revenues to government relative to what they earn and retain; terms of trade problems facing commodities, as reflected in price volatilities and trend declines, environmental and social problems related to the extractive processes.

4. ‘AFRICA is IS RICH  But who benefits???

5. The example of DRC Getting rid of Mobutu 5

6. THE HUMAN COST 3.5 million deaths 2.5 million IDPs – 400,000 children 16 million Congolese affected by war Increased HIV/AIDS prevalence & malnutrition ( 16 million Congolese affected) Number of victims = 10 Tsunamis 6

7. THE WORLD DEBATE WHAT CAN BE DONE TO HELP COUNTRIES RICH IN NAT. RESOURCES

9. What is EITI- When did it all start ? UK prime minister Blair launched the initiative at the world summit on sustainable development in Johannesburg in Sept 2002 The Initiative is grounded in a shared belief that the prudent exploitation of natural resource wealth should provide the basis for sustainable economic growth that contributes to sustainable development Partly in response to the global CS call to increase transparency in the EI e.g PWYP 18 implementing countries in Africa 1 compliant country: Azerbaidjan Key Objectives Increase transparency and accountability in the receipt and utilisation of payments and revenues generated by EI in countries that depend heavily on these resources 1.link to parallel efforts to improve public financial management and accountability, inhibit corruption and promote good governance. 2.Development of mining areas are not bypassed in competition with other sectors for priority status in public sector budgetary allocation of resources 3.Protection of the livelihood sources and rights of communities in mining zones

10. Government:: finance, Mines, EPD EITI Multi- stakeholder group Parliamentary oversight ACB, private banks, Police EITI secretariat CSOs: NGOs, media, faith based, e.t.c Mining companies EITI in Practice 9/20/2016

13. WHO RUNS EITI Secretariat based in Norway A number of countries dumps money into the Multi Donor Trust Fund-(MDTF) run by the WB Provides support to current, new and potential members Meetings every two years EITI debate shifting towards “who benefits”

14. Some myths about EITI Government-(some) Fears EITI is seen as yet another donor Imposition EITI is a double standard tool against poor African countries It is costly to run the MSG group! Governments have no funds for that EITI does not bring more revenues! Reality It is voluntary with benefits going to governments Many rich countries are more transparent and EITI benefits poor countries The MDTF goes to support countries intending to adopt EITI EITI could be a catalyst to more revenue collection and addressing related mining policies

16. What Malawi has done Activity Nation workshop Impact study Study tour Awareness to the nation Objective Ignite the debate Will EITI impact Malawi Learn from others Engaging other stakeholders

17. Challenges with EITI No contract transparency No contract negotiation capacity Its yet to answer “who benefits” question Not a means and an end in itself

19. The role of development partners German Development Corporation, RNE & AfDB

20. THE END THANKS FOR YOUR KIND ATTENTION!!!!