EU hails Uganda’s decision to join extractive industries transparency initiative

Kampala, Uganda | THE INDEPENDENT | The Head of European Union Mission in Uganda, Attilio Pacifici has commended Uganda’s decision to join the Extractive Industries Transparency Initiative (EITI).

Ambassador Pacifici says the move is a critical step in promoting transparency in the sector as Uganda paces towards oil production stage.

“The EU welcomes the publishing today of a public statement on the decision by Uganda to join the Extractive Industries Transparency Initiative. This decision is a crucial step for improved accountability as the country prepares for oil production,” Pacifici said.

Pacifici endorsement came after Finance Minister; Matia Kasaija published a statement on Thursday explaining why Uganda decided to join EITI. Cabinet Okayed the decision on January 28th.

Kasaija said the decision to join EITI was informed by appreciation of the values that EITI promotes in regard to disclosure of information in the extractive sector.

“We believe that initiatives such as EITI that emphasise transparency have the potential to strengthen the efforts of government in ensuring overall transparency in the sector, strengthen tax collection, improve investment climate, build trust and create long-lasting value of petroleum resources,” Kasaija said.

Government’s implementation of EITI recommendation will be buttressed by multi-stakeholder participation comprising of representatives from government, private sector and civil society.

This approach, Kasaija said, “helps government foster fact-based dialogue and understanding of natural resource governance.”

“Government is in the process of constituting a multi-stakeholder group whose role will be to oversee the implementation process,” Kasaija said.

The representatives will be made up of representatives from Ministry of Finance, Ministry of Energy, Ministry of Justice and Constitutional Affairs, Ministry of Water and Environment, Ministry of Lands and Ministry of Works.

Government agencies to be represented include on the group are; National Planning Authority, Uganda Revenue Authority, National Environmental Management Authority, Petroleum Authority of Uganda, National Oil Company and Bank of Uganda.

Civil society, extractive companies, donor agencies and other international agencies will also be represented.

The Extractive Industries Transparency Initiative aims to set and promote global standard of open and accountable management of oil, gas and mineral resources. 51 countries are members of the initiative.

African countries that are signatory to the EITI are Tanzania, Democratic Republic of Congo, Ghana, Nigeria, Ethiopia, Central African Republic, Malawi, Zambia, Mozambique, Madagascar, Seychelles and Congo Brazzaville.

Other African countries are Burkina Faso, Cameroon, Chad, Ivory Coast, Guinea, Liberia, Mali, Mauritania, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, and Togo.