EITI Working Group Commodity Trading Transparency

In times of multiple crises, resource rich-developing countries require strong economic governance to realize their welfare potential against the threat of sustaining conflict and poverty. The commodity trading industry’s contribution to developing country economies far outstrips official aid budgets and is higher than that of traditional extractive industries companies. However, commodity trades involving public entities and private actors are often opaque, thereby offering entry points for corruption, and at times, threatening macroeconomic stability. Disclosing data on commodity trades increases the accountability of governments.

The objective of this project is to improve transparency of commodity trades in EITI countries and contribute to a global transparency standard for companies buying oil, gas and minerals from resource-rich countries. To achieve this objective the working group strives to enhance commodity trading transparency by increasing the amount of data on commodity trades that is systematically disclosed by state owned enterprises and commodity traders. For this information to be disclosed, state owned enterprises and commodity traders require technical support in developing standardised tools to convey the right level of information without affecting their competitive edge. Support is also needed for civil society actors to enable them to analyse and query this information as they seek to close potential loopholes for corruption.

Increased and standardized SOE disclosures.

Standards and processes for commodity trade disclosures are internationally endorsed, recognized and accessible.

SOE Database is public, credible, and automatically updated.

Adoption of EITI Reporting Guidelines by 2nd international commodity trading hub.

Increased quality data to understand countries’ debt sustainability.

Expected results:  

Updated reporting guidelines for SOEs.

Targeted and on-demand support to governments and SOEs.

Support to multi-stakeholder groups and civil society advocacy efforts on commodity trading transparency.

Guidelines for buying companies: minerals and metals.

Comprehensive, digitalized SOE Database.

Guidance on the disclosure of resource-backed loans.

Outreach to trading companies, institutional investors and banks.

Convening key stakeholders through working groups.

Results from previous phases:  

Disclosure of USD 69 billion worth of payments to governments for first trades globally.

Development of Guidelines for Companies Buying Oil, Gas and Minerals from Governments and Guidance on Infrastructure Provisions and Barter agreements.

Launch of the SOE Network and continued engagement with SOEs in collaboration with key partners such as the IMF and OECD.

Support to Ghana National Petroleum Corporation, Nigeria National Corporation in the disclosure of oil and gas sales and gender disaggregated employment data.

Support to civil society in Guyana in lobbying the government to systematically disclose data on first trades.

Pilots for disclosure template in SECO priority countries.

Targeted support to several countries including Côte d'Ivoire, Guyana, Indonesia, Mexico, Mozambique, Myanmar, Nigeria, Republic of Congo.