Milestone in its efforts to reform management of oil, gas and mining revenues.
Sierra Leone was recognised as EITI Compliant by the international EITI Board on 26 April 2014. EITI compliance entails that the country regularly publishes the government's revenues from its natural resources. The country joins the 26 other countries that have met the requirements of the EITI Standard.
The EITI Board, chaired by Rt. Hon. Clare Short, congratulated the Government of Sierra Leone for its sustained commitment to implementing the EITI:
“I congratulate Sierra Leone on fulfilling all the transparency requirements of the EITI. I hope this will lead to a process of reform that brings real benefits to the people of Sierra Leone. EITI compliance does not mean that the country's natural resources are managed in a fully transparent manner, but it is a step on the way and means that citizens can see what revenues the country gets from these resources. To remain EITI Compliant, Sierra Leone will now have to meet all requirements in the revised EITI Standard”.
Although revenues from the oil, gas and mining sector in Sierra Leone in 2011 were less than 1% of GDP, they are growing fast and are forecast to grow to up to 17% of GDP by 2020. In 2011 oil and gas revenues outstripped mining revenues for the first time.
The President of Sierra Leone, HE Ernest Bai Koroma, said at the launch of Sierra Leone's latest report earlier this year:
“My government is committed to avoiding the negative consequences by ensuring that the natural resource wealth of this country is harnessed responsibly and for the benefit of all Sierra Leoneans… becoming EITI compliant is one of the ways of ensuring improved governance of the sector”.
The government of Sierra Leone sees the EITI as central plank of its efforts to reform the management of natural resources, which is the second pillar of the country's National Agenda for Prosperity. These reforms further include to develop a Core Minerals Policy and to implement the Natural Resource Charter and the Africa Mining Vision of the African Union.
Its next EITI Report, covering financial year 2012, is required to be published by 31 December 2014.
The Board's decision in full:
The EITI Board designates Sierra Leone as EITI Compliant and its suspension is lifted as of 25 April 2014. In
accordance with the EITI Standard:
- Sierra Leone must be revalidated within three years i.e. Validation will commence on 25 April 2017 or earlier upon request of the multi-stakeholder group. Validation will be conducted in accordance with the EITI Standard.
- 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.
- In accordance with the EITI Standard, Sierra Leone is expected to produce EITI reports annually. EITI Reports should cover data no older than the second to last complete accounting period.
- Sierra Leone is required to produce the 2012 EITI Report by 31 December 2014 in accordance with the EITI Standard.
- In accordance with requirement 7.2, Sierra Leone is required to publish an annual report on the previous year’s activities, detailing progress in implementing the EITI. The annual report for 2013 should be published by 1 July 2014.
The Board congratulates the government of Sierra Leone for its sustained commitment and leadership of the EITI process. The Board also congratulates the Sierra Leone multi-stakeholder group for its efforts and effective leadership in EITI implementation.
For further information about EITI in Sierra Leone, visit the country page on the EITI website.
EITI Multi-Donor Trust Fund facilitates grants to Sierra Leone and other developing countries implementing EITI. EITI MDTF is administered by the World Bank and supported by 15 donor countries.