Ethiopia Release Extractive Industries Transparency Initiative Report

Ministry of Mines, Petroleum and Natural Gas has released today the Second Extractive Industries Transparency Initiative (EITI) Report of 2014/5.

The report covers payments made by extractive companies and revenues received by government agencies and other material payments and benefits to the government agencies.

According to the report, revenues collected from the extractive industries amounts to 1.4 billion birr, contributing 0.71 percent of the total government revenues during the year.

Citing National Bank of Ethiopia and ERCA's data, the report indicated that the value of solid minerals exported in 2014/5 amounted 343.5 million USD, representing about 11 percent of the country's total export.

Minister of Mines, Petroleum and Natural Gas, Motuma Mekassa said the aim of the report is to strengthen the understanding of the sector's contribution to the economy and improve transparency and good governance in all components of the extractive industry value chain.

As long as the main objective of the transparency and accountability is mainly to build trust among all stakeholders privileged from the better natural resource management, all mining companies and the government, are expected to disclose any payments made and revenues collected, he added.

Motuma noted that the initiative will have a paramount role in strengthening the system of accountability which in turn will lead to a better way of exploiting the diversified natural resources and minerals of the country."

The report covers 28 active mining companies and three governmental organizations.

The sector has created jobs for 3,544 Ethiopians, representing 0.01 percent of the country's total labor force during the year.

Companies in the sector are expected to disclose mining payments made and revenues collected. However six companies failed to disclose these due to different reasons, it was learned.

The Second EITI report was prepared in accordance with International Auditing Standards by Moore Stephens, an independent administrator hired by the ministry.

Implementing countries are expected to produce EITI report on annual basis.

Ethiopia joined Extractive Industries Transparency Initiative in March 2014.

Ababa February 15/2018/ENA