EITI in Egypt

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Although Egypt is not an EITI compliant country, nor is it a candidate for EITI, the country presents a strong case to become one. Despite the fact that natural resources are not a high proportion of GDP or exports, they still represent an important part of the country's political economy.

Interest in transparency issues has risen not only among civil society activists but within the oil industry itself, where officials in the Ministry of Oil and managers in private companies see instruments like EITI as helping to establish a set of rules for the new age their countries are now entering. This can also prove beneficial in exposing an industry which has become highly politicised because of Egypt's gas sales to Israel.[1]

On May 27, 2011 the leaders of G8 and Egypt, Algeria, Ethiopia, among other African nations and the African Union Commission, published the G8/Africa Joint Declaration stating their commitment to support transparency in several areas including the full implementation of the Extractive Industry Transparency Initiative (EITI). The statement added that these countries welcome the complementary efforts to increase revenue transparency, and commit to setting in place transparency laws and regulations or to promoting voluntary standards that require or encourage oil, gas, and mining companies to disclose the payments they make to governments.[2] However, as of mid 2013, Egypt had not presented serious initiative to become EITI compliant.

Ms. Clare Short, Chair of the EITI, stated in late 2011, "We hope that countries like Egypt and Libya will implement the EITI to ensure that their natural resources are managed for the benefit of their people. The days of oil and natural resource riches being squandered must come to an end."[3]


References

  1. "The Arab Spring represents a huge opportunity for EITI" EITI, 2 August 2011.
  2. "G8 calls for full implementation of the EITI" EITI, 30 May 2011.
  3. "President Obama: The US will implement the EITI" EITI, 20 September 2011.