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Begin New Search Topic Civil Society Political Geography Africa Content Type Policy Brief Publishing Institution Natural Resource Governance Institute Publication Year within 10 Years

1. NRGI Impact: Guinean Communities Benefit from Mining Revenues and Civil Society Capacity Building

Author:
Natural Resource Governance Institute
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Like many resource-rich low-income countries, Guinea faces challenges in leveraging its natural resource wealth for sustainable development. Despite being the world’s second largest bauxite producer and rich in iron ore, gold and diamonds, Guinea has so far delivered only limited benefits from mining to its citizens, more than half of whom live in poverty. Guinea introduced sector-wide reforms following democratization in 2010 and is successfully implementing the Extractive Industries Transparency Initiative (EITI). However, social unrest, political instability, and the impacts of the Ebola crisis and coronavirus pandemic have slowed the country’s progress toward ensuring that mining income helps improve citizens’ quality of life.
Topic:
Civil Society, Natural Resources, Mining, Revenue Management, and Revenue Sharing
Political Geography:
Africa and Guinea

2. NRGI Impact: Demystifying Ghana’s Agyapa Royalties Deal

Author:
Natural Resource Governance Institute
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
As the coronavirus pandemic struck Ghana in March 2020, its government introduced sweeping social and health measures, but with a hefty price tag: the IMF subsequently projected the government deficit to reach 9.5 percent of GDP. Ghana’s gold wealth was seen as a possible solution. The government proposed creation of a new company, Agyapa Royalties Ltd. The Agyapa plan involves assigning most gold mining royalties from Ghana’s industrial gold production to an offshore company and selling 49 percent of the shares for approximately $500 million. When information on the Agyapa IPO surfaced in social media in early August 2020, NRGI convened discussions with a group of key Ghanaian civil society organizations (CSOs). This group coalesced into a 25-member “Alliance of CSOs Working on Extractives, Anticorruption and Good Governance.” Analysis by NRGI and the CSOs exposed important governance vulnerabilities in the deal, including risk of undervaluation; loss of control over gold sector governance; loss of ability to repay existing loans; limited consultation and questions on transparency and accountability provisions; and corruption risks. NRGI helped the alliance to broaden its advocacy agenda beyond just seeking transparency around the deal terms and politically exposed persons involved. NRGI suggested solutions to ensure an adequate valuation of Ghana’s gold and to protect the sovereign rights of the government to adjust fiscal terms and control decisions made by Agyapa Royalties. The alliance held several press conferences which led Ghana’s top media to actively report on the deal. NRGI connected with key international media outlets, with the Financial Times and the Economist citing NRGI analysts and Ghanaian members of the alliance. Following two months of coordinated pressure from civil society, a special prosecutor’s report outlined potential corruption risks and infringement of procurement legislation, validating some of the risks raised by civil society. The future of the deal is still pending, but civil society successfully placed the issue at the top of the national agenda.
Topic:
Civil Society, Media, Journalism, COVID-19, and Revenue Management
Political Geography:
Africa and Ghana

3. Big Sellers: Exploring the Scale and Risk of National Oil Company Sales

Author:
Alexander Malden and Joseph Williams
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
In many oil-producing countries, the national oil company (NOC) sells vast quantities of the state’s oil and gas. The sale of a state’s non-renewable natural resource endowment is often a revenue stream that can have a significant impact on a country’s national budget and the state’s ability to fulfil its national development priorities. It is important therefore that citizens are able to assess the performance of their NOCs, who they sell state assets to, under what terms they sell them and what they do with the resulting sales revenue. In this briefing the authors use data from NRGI’s new National Oil Company database to examine the governance and corruption risks posed by NOC’s oil sales activities. Using this newly compiled data including over $1.5 trillion in oil sales from 39 NOCs in 35 countries, they found that: The sale of oil is an economically significant activity for many countries. The oil, gas and product sales of 35 countries’ national oil companies (NOCs) to commodity traders and other buyers generated over $1.5 trillion in 2016, equaling 22 percent of these countries’ total government revenues. Most NOCs only pass on a small percentage of their oil sales revenue to government treasuries. NOCs from the 30 countries for which data are available transferred just 22 percent of their revenue to the country’s national treasury. This results in NOCs managing huge public revenues in environments that lack basic transparency, accountability and good governance practices. Seventy-nine percent of the identifiable oil sales, or $1.2 trillion, occurred in countries with “weak” or “poor” scores in the 2017 Resource Governance Index. While oil sales disclosure has improved in countries which are part of the Extractive Industries Transparency Initiative (EITI), non-EITI countries generated over 90 percent of the identifiable NOC oil sales revenue, or $1.4 trillion. This briefing also presents case studies from the Republic of Congo, Nigeria and Ecuador of ways oil sales data, where available, has been used to scrutinize NOCs’ commercial performance and to hold them accountable for the revenue generated when selling the state’s oil.
Topic:
Civil Society, Government, Oil, and Business
Political Geography:
Africa, South America, Nigeria, Ecuador, and Democratic Republic of Congo