1. A PRESENTATION ON EITI IMPLEMENTATION IN ZAMBIA A PRESENTATION ON EITI IMPLEMENTATION IN ZAMBIA PRESENTED TO Zambia Alternative Mining Indaba Workshop-Ndola PRESENTED TO Zambia Alternative Mining Indaba Workshop-Ndola BY MR. SIFORIANO S. BANDA BY MR. SIFORIANO S. BANDA HEAD-EITI ZAMBIA SECRETARIAT 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. 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. 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. 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. 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: The Extractive Industries Transparency Initiative (EITI) is a global coalition of: Donors, Donors, Oil, gas and mining companies, Oil, gas and mining companies, Resource-rich countries, Resource-rich countries, Civil society organizations and Civil society organizations and Investors. 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 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. 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. 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) 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: Developed countries intending to join EITI are: 1. United States of America 2. United Kingdom 3. Canada 4. Australia 5. France

8. CURRENT GLOBAL EITI SITUATION Other developing countries intending to join EITI: Other developing countries intending to join EITI: 1. Uganda 2. South Sudan 3. Malawi

9. EITI IN ZAMBIA Zambia has been mining copper for over 100 years Zambia has been mining copper for over 100 years Zambian economy depends on the mining sector for its exports and development 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. 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 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 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: The stakeholders felt that privatisation was not achieving its objectives because of some of the following negative perceptions: 1. Lack of transparency in the negotiations of mining agreements; 2. 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 19 th September 2012 Zambia joined EITI in 2009 and became compliant on 19 th 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 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 Expanding scope EITI to provide a platform for discussing issues such as: EITI to provide a platform for discussing issues such as: 1. To assist in developing a policy in ‘Mineral- Resource-Use-Policy’ 2. Transparency in mineral production 3. Address Tax evasion and Transfer Pricing

14. EITI POST-COMPLIANT ACTIVITIES 1. Transparency in extractive contracts and licenses 2. Contribute towards the expanding of the Tax base ( include small mining companies and Gemstones, Artisans) 3. Enacting of the EITI Act

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

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

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