Measuring Cameroon’s Transparency in the Oil, Gas and Mining Sector
Jaff Bamenjo, Coordinator of RELUFA, Joining Hands in Cameroon
According to the Revenue Watch Institute, 80% of countries fail to achieve good governance in their extractive sectors. Source Revenue Watch Institute
Cameroon, like many other countries in the world, is endowed with oil, gas and mineral resources which, if properly harnessed and used, can reduce poverty and hunger and improve the lives of citizens. But experience in many countries has shown that poor use of extractive resources has instead exacerbated poverty and hunger and generated conflicts, social instability, and corruption.
RELUFA, the Joining Hands network in Cameroon, has integrated such concerns into its campaign for social and economic justice in the extractive industries with focus not only on company practices but also on transparency in revenue management by the government. The link between transparent management of extractive resources and reduction of poverty and hunger is evident. Over the last decade, transparency in the management of oil, gas and mineral resources has occupied center stage in international and national policy agendas. The Extractive Industries Transparency Initiative (EITI) in which Cameroon is a participating country and the Publish What You Pay Campaign are some of the initiatives at the forefront in the promotion of the transparency agenda. Similarly, the Revenue Watch Institute Resource Governance Index can be considered as a complementary initiative in the promotion of transparency in the extractive industries.
Initiated in 2009, the Resource Governance Index seeks to raise global attention to the concerns of transparency in the extractives sector. The Index measures transparency in the oil, gas and mining sector in selected countries through an assessment of the institutions settings and regulations put into place by the government to reinforce the sector, reporting practices, safeguards and policy controls in the countries under study. The benchmark is a measure of the public availability of the various instruments considered in the comparative study. Ultimately, the Index checks that the institutions and laws are available and known by the public at large.
The 2013 Index was released on May 15, 2013. This was marked in Cameroon by an official presentation of the index results in a public event in Yaounde, jointly organized by RELUFA and the Revenue Watch Institute. National and international media, government representatives, bilateral and multilateral development organizations, parliamentarians, and civil society activists were present for the event.
The results of the 2013 Index indicate that some countries rich in extractive resources are making great strides in the promotion of transparency in the extractive industries. But, unfortunately for Cameroon, the results are less than favorable. Cameroon has been grouped into the “failing category” due to scant revenue transparency. Cameroon was 47 out of 58 countries and had a score of 34 out of 100 which is below the sub regional average. This is a worrying development for the government, which has touted the extractives sector, especially mineral development, as instrumental in the future generation of revenues for socio-economic development.
This result should be considered a wakeup call for the government to redouble its efforts in the promotion of transparency in the extractives sector. Full implementation of EITI is important, as well as the adoption of legislation and policies that support transparency at the local level and ensure institutional checks and balances. Cameroon should follow the example of countries that have done well in the Index.
Daniel Kaufmann, the president of the Revenue Watch Institute carefully captured this in his preliminary remarks at the event in Yaoundé, “The Index research reveals a governance deficit in how transparent and accountable countries are with their natural resources …But by pointing to reforming states and solutions, we reject the tired notion of the deterministic resource curse. “
Consequently, Cameroon should:
- Publish contracts signed with extractive industries companies
- Ensure that regulatory institutions publish their reports in a timely manner on oil, mining and gas operations, including complete information on their revenues and projects
The road towards transparency in the extractive industries in Cameroon still seems long, but it can be achieved with political will. Embracing transparency and accountability in the extractive industries is the key to Cameroon transitioning from a developing country to an emerging one by 2035.
