Oil spill in Nigeria (AFP)
This year marks the Extractive Industries Transparency Initiative's (EITI) 10th anniversary. The Kimberley Process, in which South Africa plays an instrumental role in safeguarding international diamond supply chains from conflict minerals, is also 10 this year. The Open Governance Partnership was launched in 2011 by South Africa, the United States, the United Kingdom and others.
Is South Africa failing to recognise its own self-interest and potential geopolitical advantages in joining the EITI?
Firstly, Pretoria's reticence concerning the EITI partly derives from a perception of the country's global role. Officials have long pointed out that key northern states, including Canada, have refused to accede to the initiative. Reference is also often made to the EITI's membership, which consists mostly of developing states from the global South.
Secondly, the domestic arrangements in South Africa are deemed sufficiently robust to safeguard extractive revenues from abuse. But critics point out that in most countries — including South Africa — corrupt deals leading to revenue diversion are likely to take place when contracts are negotiated even before production begins.
Global conference
The sixth EITI global conference this week in Sydney, Australia, set out to tackle this key weakness by extending the EITI's reach to the concession phases at which extractive revenues have often been diverted.
Thirdly, South Africa abstains from the EITI for domestic political reasons. The overarching policy concern is with the redistribution and redress of historical imbalances in the ownership of and benefits from South Africa's mineral wealth.
Moreover, civil society activism has often concentrated on strengthening domestic legislative oversight, such as the Promotion of Access to Information Act No 2 of 2000. Some analysts, though, regard the Act as more of a tool in the hand of the government to compel compliance by companies rather than as a lever for citizens to force disclosure of government-held information on contracts. Many extractive contracts are still classified as state secrets in South Africa.
Africa accounts for 21 of the EITI's 31 member countries. But a major transformation is under way in the EITI, which previously counted Norway as its only developed country member. As evidence, it has recently drawn into its orbit a number of influential northern states.
David Cameron, the prime minister of the UK (the country most instrumental in the EITI's founding, although it did not join it), said during his recent unveiling of the UK's G8 presidency agenda that he is considering following the US into the EITI.
The US formed a multistakeholder group in February comprising representatives of industry, government and civil society to oversee the implementation of an American EITI. And Australia has conducted an EITI pilot study with a view to becoming compliant.
Indeed, the EITI could provide a platform for South Africa's pursuit of middle power aspirations, including by mediating international norms. It could also be a useful frame through which South Africa can exert soft power and influence. An active and expanding South African role in the EITI potentially opens up channels for its domestic regulatory best practices to be regionalised or globalised.
Given the advanced nature of South Africa's legislation and oversight mechanisms, as officials themselves claim, they should embrace the argument that South Africa will bring something unique to the EITI — the experience shared with its African peers. Such peer-to-peer engagement will arguably be more relevant to the experience of many African resource producers, given their commonalities with South Africa, including poverty and redistribution challenges.
South Africa's Parliament, executive, civil society and private sector ought to re-enter a dialogue about the potential benefits of the framework and its likely contribution to furthering investment, diplomatic and other interests in the EITI-compliant jurisdictions around Africa and beyond.
Oladiran Bello is head of the governance of Africa's resources programme at the South African Institute of International Affairs