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Brief: The business case for SOE transparency

State-owned enterprises (SOEs) often own and operate key aspects of the value chain in the mining, oil and gas industries, as explorers, producers, logistics providers, refiners, marketers and private-sector partners.

As SOEs are increasingly corporatising their operations, transparency in financial disclosures has become central to their ability to raise funds, develop new partnerships and improve their accountability to their primary shareholders in government and to citizens as the ultimate beneficiaries. Global standards and guidelines for SOE disclosures and governance, such as the EITI Standard, can support SOEs develop good practices in transparency, financial management and governance.

SOEs are increasingly integrating transparency reforms in their business planning. Transparent financial management and relations with the state can yield important benefits for SOEs.

Transparency can:

  • Improve access to finance

  • Enhance market efficiency

  • Promote public-private partnerships

  • Facilitate ease of doing business

  • Inform performance benchmarking

  • Strengthen reputation and trust

  • Support decision-making in the energy transition

  • Shed light on commodity trading