The EITI Board today (26 October) declared Mozambique 'Compliant' with the EITI Standard. There are now 16 countries that are 'EITI Compliant'. EITI compliance means that the country has an effective process for annual disclosure and reconciliation of all revenues from its extractive sector. This allows citizens to see how much their country receives from oil, gas and mining companies.
Mozambique is a country in transition. Although the extractive industry contributed just 1% of GDP in 2010, investments in the sector, particularly in offshore gas and in coal, have increased exponentially and there are indications that in the next few years this will easily exceed $10 billion.
EITI Chair Clare Short said "Mozambique is facing a crossroads with extractive revenues set to dwarf incomes from other sources. EITI compliance means that Mozambicans have committed to be transparent about how the country manages these new resources. This will help to ensure that these resources are well managed for the benefit of the people. I congratulate the Mozambique on this excellent achievement."
The decision of the Board on the EITI status of Mozambique in full:
The EITI Board designates Mozambique as EITI Compliant as of 26 October 2012. In accordance with the EITI Rules:
- Mozambique must be revalidated within 5 years (i.e., by 26 October 2017);
- Stakeholders in the process may call for a new validation at any time within that period if they think the process needs reviewing;
- Where valid concerns exist that a country has become EITI Compliant, but its implementation of the EITI has subsequently fallen below the standard required for Compliance, then the Board reserves the right to require the country to undergo a new validation or face delisting from the EITI; and
- In accordance with the 2011 edition of the EITI Rules, Mozambique is required to produce EITI reports annually. EITI Reports should cover data no older than the second to last complete accounting period (i.e., Compliant countries must publish a 2010 EITI report by 31 December 2012 to meet the requirement for timely reporting).
- In accordance with requirement 21(c), Mozambique is required to publish a public report annually on the previous year’s activities, detailing progress in implementing the EITI and any recommendations from the validator.
The Board congratulates the government of Mozambique for its sustained commitment and leadership of the EITI process. The Board also congratulates the Mozambique MSG for its efforts and effective leadership in EITI implementation. The Board calls on the government and multi-stakeholder working group to ensure that the Board’s recommendations are implemented in full, and tasks the EITI International Secretariat with providing regular progress reports to the EITI Board.