By Kaleyesus Bekele

Ethiopia is trying to join the Extractive Industries Transparency Initiative (EITI), the global initiative launched by Tony Blair in 2002. EITI advocates the disclosure of revenues earned by mining companies and governments from mining businesses.Member countries are obliged to reveal the amount of royalty income tax, and land lease they collected from each mining company. Mining companies are also required to publish the amount of revenue and profit they earned and all the fees they paid in the form of royalty, income tax and lease payments. Both governments and mining companies have to disclose relevant information to the media.


The Ministry of Mines and Energy last year launched the initiative. Hunde Meleka, head of the EITI’s implementation committee, told The Reporter that the ministry, which is firmly committed to implementing the initiative, has established a national steering committee. The committee has 17 memebers - 5 from the government, 5 from civil society, 5 from mining companies operating in Ethiopia, and two from others. “The initiative forces both governments and companies to be more transparent and the Ethiopian government has a firm commitment to join the initiative,” Hunde said.

Ethiopia applied for membership in August last year. However, the Oslo-based EITI has withheld the application saying that the new Civil Society and Charities law will not allow NGOs to work with the initiative. Hunde argues that the new law does not prevent NGOs from working with the initiative. “We are explaining to them that NGOs can work with the government,” Hunde said. “The law does not prohibit them,” he added. The new Civil Society and Charities law does not allow international NGOs to work on advocacy.

Ethiopia will ask the board of directors of EITI to reconsider its application during its meeting in October. Membershipof the initiative helps countries to attract investment and secure funds.

EthiopianReporter