Uganda in the final stages of joining Extractives Industries Transparency Initiative

By George Mangula

Uganda is the final stages of joining the Extractives Industries Transparency Initiative (EITI), the global standard for the promotion of transparency and good governance in the management of oil, gas and mineral resources. The EITI Standard requires countries and companies to disclose information along the extractive industry value chain, including production and revenue collection.

The implementation of EITI in Uganda is overseen by participants from government, private sector and civil society in a Multi-Stakeholder Group (MSG) approach.

On January 28, 2019, Cabinet made the decision for Uganda to join the EITI and tasked the Minister of Finance, Planning and Economic Development (MoFPED) Matia Kasaija to spearhead the process to fulfil the specified steps that countries are required to take in order to join EITI. Upon fulfilment of the steps, Uganda will submit an application to the EITI Board for assessment and approval in order to start implementation.

Progress of EITI

In February 2019, minister Kasaija issued a statement of commitment to join EITI and subsequently appointed Moses Kaggwa, the Director Economic Affairs in the Ministry. He is also the Chairperson of the MSG to lead the process. In March 2019, the MSG was set up and constituted to oversee the EITI process. The MSG is supported by a National Secretariat which was set up in November 2019.

The MSG has held seven meetings in which it has developed its Terms of Reference and the national Medium Term Work Plan. The work plan intends to address the challenges facing the extractives industry in Uganda today, which include: limited transparency and other challenges related to revenue management, accountability and governance.

On July 3, 2020, the MSG approved Uganda’s application to the EITI Board. Following this, on July 13, 2020, Mr. Kaggwa, formally submitted the application and upon approval by EITI Board, the MSG will embark on EITI implementation in Uganda. 

According to officials, it is expected that EITI implementation in Uganda will lead to; improved understanding of the sector in order to strengthen the governance framework, improved transparency around licence and contract awards for better scrutiny in order to hold government to account, improved transparency to ensure that mining operations are undertaken in a transparent manner and improved transparency in licence/contract awards to ensure that the exploitation of this resource will result in lasting benefits for the public.

Other expected benefits are; improved transparency to ensure that information on ownership of firms in the extractives sector is published, improved understanding of the sector to ensure that UNOC is transparently and efficiently operated, improved transparency in order to map stakeholders and investments, improved transparency in ASM data, in order to ensure that ASM contribute effectively to revenue and development, public awareness of gender issues raised in order to ensure that they are mainstreamed into extractives governance as well as increased participation of Ugandans in the extractives industry.