Ascertained transparency of extractive industries attracts viable investors to the sector.

As Cameroon revises its lessons in view of catching up with the last chance of being declared one of the, “Compliant” countries to the Extractive Industries Transparency Initiatives (EITI) when the last opportunity comes up in 2013, one thing remains certain: If she gets the required pass mark to join 14 others that have conformed to the 35-member States initiative, it would have far-reaching effects on the mining sector variously cited as one of the main pillars on which the country’s 2035 growth vision lies.

Given its hitherto “executive status” whereby information, especially statistics on extractive industries were hardly made available to all, the sector in the country had suffered from reticence from the part of investors. Proof: Records show that some 165 research permits and five mining permits have already been issued to mining companies in Cameroon with very little or no fruit to show for. Since adhering to EITI in 2005, Cameroon is still running after the Compliant Status despite regularly publishing its reports in 2006, 2008 and 2010.

Easing the Business Climate

At a time when efforts are being multiplied to ease the business climate, meeting up with the exigencies of EITI could attract investors to unblock the hidden wealth of the mining sector. This is so because mining requires huge investments and any investor who ventures into it needs to be ascertained that his resources would generate the required revenue. Cameroon is said to be rich in liquid and solid minerals but their development, especially solid minerals, is still to substantially contribute to socio-economic development. There are so many mining projects in the country that are yet to take off and there is also much of the country (60 per cent) whose mineral prowess is yet to be known. Transparency that EITI advocates is capable of surmounting these challenges. The attainment recently to the Kimberly process concerning the certification of diamond is a step in the right direction but others must follow suit.

Curbing Corruption, Embezzlement

Regularly publishing payments made by petroleum and mining companies as well as what the State gets from these companies would equally represent a milestone in the fight against corruption and embezzlement that have greatly compromised sustainable socio-economic development in the country. Reports from compliant countries like Nigeria, Ghana, Niger and Liberia, for example, say resources emanating from extractive industries are now easily traced given that companies are increasingly publishing what they pay. Much needs to be done to ensure that the many mining groups that are functioning informally are canalised to the formal sector and that the State is party to their financing so as to know what they have and pay.

The Extractive Industries Transparency Initiative (EITI) increases transparency over payments by companies from the oil and mining industries to governments and to government-linked entities, as well as transparency over revenues by those host country governments.